Despite whispers of a slowdown, London’s luxury property market is still hotter than a summer heatwave, with rents shooting up 2.6% in August alone, according to LonRes.

Research shows that rents are now a staggering 31.6% higher than they were just a few years ago, back in 2017-2019.

Renters Clamouring Despite Summer Slowdown

There has been a dip in the number of new tenants signing on the dotted line. New lettings are down by 14.5%, and those all-important new instructions have fallen by 7.7%.

But experts are blaming the usually quieter summer months and reckon things will pick up again soon.

In fact, there are still 6% more prime properties up for grabs compared to this time last year. However, it’s worth noting that we are still seeing 50.2% fewer homes on the market than five years ago.

Sales Slowdown – Time to Bag a Bargain?

It’s not just the rental market that’s experiencing a bit of a summer slump. Sales in August were down 7.5% compared to last year, making it a quieter month than usual.

But smart investors know that a quieter market can mean prime opportunities for those ready to strike.

Autumn Action Predicted: Will Demand Outstrip Supply?

Industry insiders reckon the market will be back with a bang this autumn. Nick Gregori, from LonRes, predicts a surge in new properties hitting the market. But the million-pound question is, will there be enough eager beavers to snap them up?

Gregori reckons that after a brief “honeymoon period” following the recent change in government, the mood music has changed somewhat. With whispers of spending cuts and tax hikes in the air, some buyers and sellers might be tempted to sit tight and see what happens.

Mega-Mansions Feeling the Pinch

Interestingly, it’s the super-luxury end of the market (we’re talking £5 million plus) that’s feeling the most sluggish. Transactions for these trophy homes took a nosedive in August, plummeting by a dramatic 47.2% compared to the same time last year.

So, there you have it. The London rental market is still a goldmine for landlords, but those looking to sell might need to be prepared to wait a little longer for the right buyer to come along.