26% slump in sales of London homes over £1m

The dramatic slump in the sale of London’s most expensive homes is continuing with one agency claiming that over the past 12 months there’s been a 26 per cent slump in sales of homes over £1m.

“After one of the most tumultuous weeks on record for the world’s financial markets, there is naturally considerable speculation regarding the real estate manifestations of the economic slowdown in China and knock-on negative impact for global equities” says Richard Barber, a director at W A Ellis. 

He says it is not always the case the London is seen as the natural investment choice for rich foreign buyers. “There are exceptions to this trend, notably from economies experiencing a more severe currency devaluation; Russia, China, and Malaysia are all likely to fall into this category and investment flows from these countries may moderate through the remainder of 2015” he warns.

However, he expected an increase in business from Hong Kong and Singapore.

The prime central London lettings market is not as buoyant as usual either - Tom Middleditch, an associate director at JLL, says an increase in supply may keep rental price growth in check.

“With plenty of options for tenants, landlords still need to be realistic about pricing or they face extended void periods which are damaging. Tenants are being increasingly particular over their property choices and are prepared to negotiate, often submitting multiple offers in order to secure the best deal” he says.