A London flat has seen its sold price drop from £1.4million to £950,000 in less than seven years, having sold 15 years ago for an eye-watering £2.1million.

It equates to a loss of £450,000 in the past seven years, or almost £65,000 a year during that period.

It comes amid multiple warnings about household budgets and the impact on house prices amid the escalating conflict in the Middle East.

Flat challenges

The property in London’s Canary Wharf has fallen victim to what appears to be part of a growing trend of price reductions on flats, particular in built-up city centres.

While it is perhaps one of the more extreme – and more expensive – examples, it is not an isolated one, according to market commentators.

Buying agent Henry Pryor explains on X.com:  “London flats are falling out of fashion.

“They were struggling to sell last year and by January the warnings were everywhere and it’s getting worse.”

Flats have faced an increasing number of challenges in recent years, including fire safety issues following Grenfell, toxic ground rent clauses and soaring management charges.

Price reductions

The London flat is listed on Rightmove as having sold in October 2023 for £1.4milllion.

Seven years later and the three-bedroom flat on the 40th floor of a block of flats in Canary Wharf sold for almost 33% less at £950,000.

It compares to 15 years ago, when the 2,000 square foot flat with an allocated parking space sold for £2,108,000.

The leasehold property in Pan Peninsula Square also boasts three bathrooms, built-in furniture and a 24/7 concierge.