London property market slows with big cuts in asking prices for property for sale
Some areas in London are experiencing big cuts in the asking price of property. Earls court in west London has seen 40% of properties on the market for sale have their asking prices cut and Surbiton in South London has seen 38% of properties reduce their price according to property analysis firm Propcision.
The borough of Kensington and Chelsea have had to cut their asking prices by an average 8pc for 30% of properties on the market.
The following chart shows the biggest drops.
Adam Challis, head of residential research at JLL, said: “The demand doesn’t fuel a sense of urgency so you need to adjust expectations on price to get an agreed sale.”
He added: “What we’re seeing are moves in the market to get in line with expectations, but to create a soft landing or a stabilisation or plateau, rather than a fall.”
Michelle Ricci, co-founder of Propcision, said: “The upward trend prime central London enjoyed for the past few years has started to show signs of resistance. This is typically associated with the start of correction, although not necessarily a downward trend.”
Mr Challis said: “The data corroborates our own views on new build space – in east and south-east London, where there are lower value properties, there’s a lot of momentum and they will continue to see pretty decent price growth.
“We feel the data suggests asking prices are holding steady with levels seen in the past six months,” Ms Ricci added. “That said, there are particular areas of vulnerability that may start to show demonstrable evidence of a downward trend – most notably new-builds.”