The latest index shows a fall of 10% for properties over £1million the lowest level on record
Although the wider UK property market is yet to suffer any detrimental impact from Brexit, London’s prime market is seeing demand continue to fall, the latest index suggests.
In the £1 million plus sector in London demand has fallen by 10%, the lowest level on record and a further drop since demand cooled following April’s changes to stamp duty for buy to let and second homes purchases.
The data from the prime central London property index from hybrid estate agent eMoov shows that the five areas where demand is at its lowest are Mayfair at 3%, St Johns Wood, Knightsbridge and Belgravia all at 4% and Fitzrovia at 5%.
The index, which records the change in supply and demand for property above £1 million by monitoring the total number of properties sold in comparison to those on sale, shows that some 75% of London’s most prestigious locations have seen demand remain static or drop since the second quarter of the year.
Indeed, the only places to have seen a positive uplift in demand for property over the last three months are Holland Park at 44%, Marylebone at 38%, Notting Hill at 17% and Primrose Hill at 9%.
Notting Hill is also fourth hottest where demand levels are concerned, currently at 14%. With Belsize Park enjoying the highest demand across the prime central London sector at 18%, followed by Islington at 17%, Chiswick at 15% and Holland Park at 13%.
According to Russell Quirk, eMoov chief executive officer this slowdown was always likely to happen as these areas of London rely heavily on high end foreign investment and second home visitors to survive.
‘Whilst the rest of the UK market seems to be ticking along with little impact as of yet, the immediate weakening of the sterling and negative response from the rest of the EU seems to have had an instantaneous knock-on effect on the prime central London market,’ he said.