An international property and residency consultancy claims the sold prices of homes in some prime London locations have collapsed by up to 40 per cent during the pandemic.
Meanwhile other prime London postcodes have seen sold prices soar - in one case by 54 per cent.
Astons has analysed sold prices across what it calls “the capital’s 10 most high-profile, prime property postcodes” comparing the average sold price since the start of the pandemic early last year (2020) to the average sold price the previous year (2019).
The research shows that despite the initial market instability caused by Covid, sold prices across all Greater London have crept up an average three per cent during the pandemic.
However, the average sold prices across prime central postcodes tell a very different story.
They have fallen 10 per cent on average and a great deal more in selected locations.
For example the W1J postcode in Mayfair and St James’s has been the worst hit with sold prices falling by 40 part cent - down from an average £4.9m to £2.9m.
Kensington’s W8 postcode has seen the second-largest decline falling - down 18 per cent. Then comes SW1X - down 17 per cent; W1S down 15 per cent; and SW1W down 11 per cent.
Astons says five other prime locations have seen price rises during the same period under analysis.
The SW1Y postcode has seen the average sold price in the area climb by 54 per cent during the pandemic, with Chelsea’s SW3 and SW10 postcodes also enjoying an uplift of 23 and 12 per cent respectively.
W1K rose six per cent and SW7 was up three per cent.
“The UK market has stood very firm in the face of Covid uncertainty” explains Astons managing director Arthur Sarkisian.
“Unfortunately, this has not been the case in some of London’s most sought after high-end postcodes, with sold prices falling since the start of last year. This decline in property prices has been due to a number of factors. While nice, the stamp duty holiday saving hasn’t boosted buyer demand amongst high-end homebuyers to the same extent as it has in the regular market.
“Restrictions on travel have also prevented foreign investment to a certain extent while those looking to buy for themselves have continued to opt for more peripheral locations such as Hampstead.
“However, the silver lining is that prime London has arguably become more attractive as a result of lower property values, particularly to foreign investors. The current landscape not only offers a saving where property prices are concerned but also in terms of the soon to be implemented stamp duty increase for foreign buyers as of April this year.”