Garrington Property Finders says some two-thirds of homes in two high-value parts of prime central London have been on sale for over a year – and have yet to find buyers.
In its latest market snapshot the agency says media attention on London’s current market difficulties has focussed on average prices – but this is of limited value, because it does not take account of the huge variations in performance in different parts of the capital.
Certain parts of the London market are reasonably free flowing, whilst others have dramatically slowed, says Garrington, which has used LonRes data to support its views.
“By way of example; at the top of the market in Mayfair and St James’s 63 per cent of property for sale has been on the market for over 12 months, and the average discount on initial asking prices is 14.8 per cent” the agency reports.
“In complete contrast in Putney, Barnes and Wimbledon, only 12 per cent of homes have been on the market for longer than 12 months, and the average discount on initial asking prices is 7.2 per cent.”
The agency says the number one reason why some London homes are so slow to sell, and require substantial asking price reductions, is the level of stamp duty on the highest value properties.
“In a league of its own, ahead of Brexit, the election result and inflation concerns, Garrington considers [stamp duty] rates the number one issue inhibiting the market, particularly in the prime sector where charges now vary from eye watering to plain absurd” the agency notes.