FTBs 'dominate' Prime London market in Q2

First-time buyers grew their share from 22% in Q1 to 34% in Q2, as buy-to-let investor activity fell following the rush to beat the additional Stamp Duty levy.

Landlord interest cooled in Q2 to just 13% of sales, down from an "uncharacteristically high" 36% in Q1.

The increase in first-time buyers also freed up 'logjams' leading to increased second-stepper activity – 22% of transactions in Prime London compared to 9% at the start of the year.

The rate of quarterly house price growth in Prime London cooled in Q2, with a 0.3% decrease from the opening three months of the year.
 
David Brown, CEO of Marsh & Parsons, commented: “We’re often surrounded by stories of what a raw deal first-time buyers get – particularly in the capital – so it was encouraging to see them dominate the market in the second quarter of the year. For all the hurdles that stand in the way of prospective purchasers there are plenty of other positive factors such as historically low interest rates to help soften the blow.
 
The EU referendum result at the very end of the quarter came too late to impact the overall trends seen, but after the initial panic in the days immediately following, it’s been very much a case of business as usual ever since. Property investor activity is unlikely to remain so low in Q3 – especially with the currency exchange situation making London property extremely attractive for landlords from overseas.”