Good news for Londoners looking to sell their homes: after a slow start to the summer, the capital’s property market is bouncing back, with sales rising following the general election.

The number of homes sold in July 2024 was almost 9% higher than in July 2023, according to property experts LonRes. This surge in activity follows a dip in June, which analysts blame on pre-election jitters.

There’s even more good news for sellers, as the number of new buyers entering the market has also jumped – up by almost 24% compared to July 2023. This suggests that there is plenty of pent-up demand for London property.

House prices are still falling

However, it’s not all rosy. While the number of buyers is increasing, the actual price of your home is likely to be falling.

The average price of a prime London property fell by 4.9% in the year to July 2024. But this is still slightly higher than pre-pandemic levels – so if you bought before 2020, you’re likely still in the black.

The most expensive homes – those worth over £5 million – are proving particularly hard to shift. Sales in this sector were down by almost 19% year-on-year. This is likely because these luxury properties are most sensitive to economic uncertainty.

Renters face tough times ahead

Renters, meanwhile, continue to face a tough market. While the pace of rental growth slowed slightly in July, average rents across prime London are now almost 30% higher than they were before the pandemic.

Nick Gregori, head of research at LonRes, said that the big question for the London property market is whether this post-election bounce will last. He said: “The key question looking ahead is how sustainable this improvement is – are the conditions in place for a sustained recovery?”

For renters, the outlook is less uncertain. With the number of properties available to let still well below pre-pandemic levels, competition for rental properties is likely to remain fierce.