Fall in property prices
Prime London properties are selling with an average ‘discount’ of over 11%
Posted: Sept, 2018
It’s still a buyer’s market for luxury London property, says Coutts Bank, but the market has ‘stabilised significantly’ & ‘could be levelling out’.
Research out from Coutts Bank using Lonres data suggest that property prices in prime London continued to fall in the last few months – but that the rate of decline seems to slowing.
According to the Lonres data the average price in prime London fell by 0.3% in the three months to June (data for postcodes from Putney to Holborn; Hampstead to Wimbledon), compared to a much larger 3% drop in the first quarter of the year. It is now 1.7% lower than a year ago and 14% below 2014’s peak.
JLL recorded a 0.1% dip in prices across PCL postcodes in Q2; Savills and Knight Frank both saw average sold prices drop by 0.9% in the three month period. Savills is now estimating the annual change in PCL to be -3.8%, while Knight Frank puts the annual fall at a less chunky -1.8%. LonRes has recorded a 16% bounce in sales volumes across prime London in the three months to the end of June – but deal numbers are still 17% below their level at the same time last year, and only around half of 2013’s volume.
Knight Frank estimates that the peak-to-trough difference this time around is -9% in PCL (less than in the 1990s), but Savills puts PCL’s average fall since 2014’s peak at a more considerable -17.6%.
Half of London’s £1m+ homes are now being sold at a discount compared to the asking price, says Coutts, with buyers getting a little over 11% off on average.