Some luxury London residential properties are being slashed by as much as six figures to get a sale in the wake of Brexit, according to property analysts LonRes. In the area known as the ‘golden triangle’ which incorporates postcodes around Kensington, Knightsbridge and Mayfair, the average house price cut is Just over £171K. Similarly, in homes across the Zone 1 and Zone 2 areas of London, house price cuts are just over £100K compared to around £59K this time last year.
Since Brexit, LonRes has calculated that around 46% of homes in central London that were up for sale had to be reduced before a buyer could be found – this compares with 36% in the same period last year. These figures suggest that the luxury end of the London property market has taken a significant hit since the vote to leave the EU and of course, the hike in stamp duty hasn’t helped either.
Whilst the rest of the London property market is fairly stable, the luxury end seems to be suffering from homeowners pricing their properties unrealistically given the current market conditions. It has definitely become a buyer’s market in London at the moment with prices coming in at 10% to 15% below the original asking price and whilst some international investors have been swooping in to take advantage, analysts believe that many are holding off, hoping that the prices will fall even further as we get closer to the triggering of Article 50.