Data company Propcision has quantified the scale of asking price reductions on some prime central London properties, with many dropping by 20 per cent and a small number around 30 per cent.
One particular property’s asking price in Wilton Mews in Westminster has had its price cut by £6m - equivalent to 14 per cent of its original asking figure. This is thought to be the largest asking price fall in absolute terms.
“Whilst the overall average price reduction in London appears to be between five per cent and seven per cent, the bulk of steeper reductions of 15 per cent to 20 per cent fall mostly on properties in Central London with most taking place in Westminster, Wandsworth, Kensington and Chelsea, Lambeth and Hammersmith and Fulham” says Michelle Ricci, co-founder of Propcision.
However, a few even larger price reductions are to be found across the capital and not just in prime areas, although she says asking price drops of this scale are rare.
“Marketing history of the properties suggest a series of reductions over time. It may be that sellers initially priced ambitiously with hopes of an ever-increasing market. These sellers may now have acclimated themselves to a changing-market strained under a combination of political and economic pressure alongside a series of changes in taxation” says Ricci.
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And so it begins. The central London property crash is really starting to get traction. The panama papers with the naming of properties owners in off shore companies combined with the planned marketing of properties to Londoners for 6 months before foreign investors will speed this up.
We haven't even got onto the effect of Brexit on house prices.
A huge problem and hats off to Michelle and the team for identifying this and other issues within the property market. However, the likelihood that this will have a major effect outside of the capital is small; predominantly as the ultra expensive end of the market, fuelled by foreign money being poured in to clean or protect it from prying eyes, is almost a market within a market and, thus, has an unintentional but real firewall.
House price falls can ripple out of central London just as house price rises have rippled out before. Nine Elms is not central London and the prices are falling like other struggling developments across London. Yearly figures will hide the slowdown, monthly ones will show the spread/contagion.
Who says there is a crash?? Central London prices have been over-inflated for years due to large amounts of money being laundered by overseas "investors" purchasing them. Now the noose is being tightened and these "investors" are being told to declare where the money comes from (even existing owners) the easy living central London agents have had is coming to an end. Time to learn how to be an estate agent methinks. As for a crash-no.
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