Strutt & Parker has compared its latest figures for the value of property transacted in prime London with those achieved by the firm in the third quarter of last year - with startling results.
Properties below £2m saw a decrease of 20.8 per cent, while homes priced between £2m and £5m homes went down by 27.1 per cent. £5m+ homes saw a decline of 15.2 per cent.
The agency says that when looked at over the longer-term these figures are not as drastic as they appear - in fact, the volume of transactions is actually up by 3.1 per cent compared to Strutts' rolling 5 year quarterly average.
We must have a sense of perspective and accept 2013 was an exceptional year. Sales volumes are also showing a slowdown and two quarters of data suggest a trend of decline. This is as we predicted. We have seen these conditions before in the run up to a General Election when speculation mounts says the firm's research head, Stephanie McMahon.
Lulu Egerton, perhaps the best-known agent at Strutt & Parker, says: There is no doubt that PCL property is in the midst of a price correction. Asking prices had become inflated and they are now in a period of correction where prices are being adjusted down by around 5 per cent to 10 per cent as buyers become far more price sensitive.
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