Luxury London property falls sharply

Residential property prices in prime central London are currently falling at their fastest rate for seven years owed in part to greater uncertainty in the market following the UK’s decision to leave the EU.

Home prices in the heart of the capital have been dropping since late last year, but Brexit appears to be accelerating a downward trend initially caused by increases in property taxes, according to Knight Frank.

The property consultancy’s prime central London index fell 1.5% last month from a year earlier, due to the uncertainty created by the EU referendum and property tax rises which pushed up buyers’ costs and brought sales forward to the start of 2016.

“Since the vote, a number of buyers have requested discounts due to the climate of political and economic uncertainty,” said Tom Bill, Knight Frank’s head of London residential research.

Property price falls in prime central London were led by Knightsbridge, where values fell 7.3% last month, the biggest drop of any of the 15 areas examined whilst the biggest rises were in the City of London and Islington

“The decision to leave the European Union has provided a backdrop of short-term uncertainty that is affecting behaviour in the prime central London property market,” Bill added.

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Written by: Houseladder