The LonRes data consultancy that monitors transactions right across prime central London says Brexit is the single biggest factor impacting the market - where prices now are 3.0 per cent lower than a year ago.
On top of that 51 per cent of homes that have sold at all have seen a price fall, and 78 per cent of agents responding to the quarterly LonRes survey say asking price drops are accelerating in number.
LonRes says homes priced under £1m are the worst hit in terms of price falls - down 5.2 per cent now compared to this time last year.
Properties sold for between £1m and £2m are the only ones to see a price rise in the past 12 months; they’re up 1.5 per cent.
There’s also a supply crisis with the number of new instructions in Q3 2018 down 19 per cent compared to the same period last year - and in terms of homes priced over £2m there has been a whopping 25 per cent drop in instructions.
At the same time slowing sales mean that the overall stock is up - it’s 7.0 per cent higher now than at this time in 2017.
Transaction numbers make grim reading too: they are 17 per cent less now than a year ago with the upper end of the market (for homes worth £2,000 per square foot or higher) seeing a huge 34 per cent drop.
In terms of the year ahead, Brexit is considered the biggest factor impacting the prime London market according to 59 per cent of agents; stamp duty is the biggest factor for 29 per cent.
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Brexit has caused uncertainty but more because of the lack of clarity from the government on what Brexit will actually mean for business and people.
I still believe that the Stamp Duty changes which came into effect in 2015 have had a bigger impact on london than anything else. The cost of moving for normal families is just way to high and has changed how people plan for long term, as the newly released data from Barclays confirms, home owners now move on average every 19 years compared to 5 to 10 pre stamp duty changes.
Damn right!
How much more proof do you need to demonstrate that it is Stamp Duty not Brexit (which is a distraction and delaying factor) that has caused the market to fall and transaction numbers to dive. People have changed their behaviour, they don't move as frequently and when they do it is probably less likely to be an upward move. The costs are just horrific...over £200,000 in duty at £2 million....+ 3% if you don't sell your existing property at the same time. Thankyou George Osbourne, the renowned Editor of a free newspaper! The Gov now can see receipts are falling so perhaps they will do something about it, before people get used to not climbing the property ladder and find something else to do!
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