The pain in the prime London property market continues as research reveals that nearly £1 billion has been knocked off the original asking prices of properties for sale within its upmarket streets.
Analysis of portal data by Garrington Property Finders shows that the average reductions is 9% or, by the crazy metrics of the capital’s property market, £223,000.
Such dramatic reductions (shown in a heat-map form, above) have been created by a slow market, Garrington says, and in six of the seven areas featuring the greatest reductions more than half of properties currently for sale have been on the market for over six months.
The most dramatic reductions in prime London property are in the more expensive enclaves including St James and Victoria, where the average reduction is 14.1% or £765,919 and Knightsbridge, where asking prices have been slashed by 12.1% or £927,188 on average.
Well-to-do homes in the City, South Kensington, Soho, Covent Garden and Marylebone areas of London have all seen an average reduction of approximately 10%, the research shows.
“2017 was not a year for the faint-hearted in London’s prime property market,” Garrington’s Managing Director Jonothan Hopper (pictured, left).
“Acute price sensitivity among buyers continues to force sellers to reduce their expectations, and in the most expensive areas this is throwing up some striking discounts.
“The slowing of the capital’s prime market predates Brexit – it was triggered instead by 2015’s punitive increases to the highest rates of Stamp Duty.
“With the buyers of high value homes facing the prospect of paying hundreds of thousands in tax, vendors are frequently sharing the pain by offering corresponding discounts.”|
But Garrington says the unique, overseas-buyer led nature of central London’s property markets means its problems may not spread outside of its stucco-lined terraces.