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.