This has impacted the top end of the market in particular, with increasing numbers of vendors looking to sell ahead of potential tax increases. 
Meanwhile, buyers are cautious, preferring to wait and see. And for those buyers who remain active, there’s a lot of properties for them to choose from and they can a ord to be, and are being, discerning. Whether the tax rises materialise or not, to some extent the damage to theimportant Autumn selling season has already been done thanks to the large gap between election and Budget.
 Given this background, the wider prime Londonsales market has performed reasonably well. Average values haven’t returned to growth, but 
the falls have slowed. Transactions in Q3 were slightly ahead of last year but more promisingly under o ers have increased signi icantly. The 
improved mortgage market is likely to have played a part here, with rates on some deals falling below 4% following the base rate cut in 
August. But any return to the mortgage rates of c.1% seen in the latter half of the previous decade are unlikely based on current inancial 
market expectations.
 The prime London lettings market plotted a steadier course in Q3. Available stock is gradually recovering from the lows of the last 
couple of years, but in general limited supply continues to constrain activity. Newly agreed lets over the third quarter fell compared to last 
year, failing to build on the growth over the irst half of 2024.
 The outlook for the end of the year is in the balance. If the Budget delivers all the promised bad news, we could see sales activity slow 
down again, particularly at higher price points. If it turns out to be more bark than bite, wecould see some pent-up demand unlocked and another twist in an up and down year, before the market inally settles.