The recent rise in interest rates does not impact all sectors of the housing market equally.  With more than half of all owner-occupied homes having no mortgage secured against them and cash purchase, particularly in higher value prime markets, making up a significant proportion of homes sold. Analysing sales across London boroughs over the last 12 months shows 44% of homes in City of Westminster and 49% in Kensington & Chelsea were purchased in cash. This compares to 19% London wide. (Source: JLL Research using HM Land Registry)

 Of course, there will always be households who need to move. But in times of uncertainty and higher rates it is discretionary movers who are most noticeable in their absence. So, while the lack of reliance on expensive mortgage debt weighs less heavily on prime purchasers the higher proportion of discretionary buyers does.  With wider market sentiment impacting purchaser propensity to buy in PCL this quarter.