According to Savills prime property has fallen 3.9% in the last 12 months
Prime property in London has been losing some of its shine this year. The political and economic uncertainty in the UK has been weighing on London’s high-end homes, as research shows prices fell in the second quarter of 2016.
The average value of a prime property in central London fell 1.4 per cent in the quarter, leaving London’s most exclusive housing 3.9 per cent cheaper on the year, according to research conducted by Savills in the week before the EU referendum.
London’s poshest properties became eight per cent cheaper than they were at their peak in the third quarter of 2014 as big spenders in the capital held out for the outcome of the EU referendum.
Lucian Cook, head of UK residential research at Savills, said: “There have been conflicting signals in the market in the period post-referendum, which suggests the impact of a vote to leave the EU will only become clear over coming months as the market finds its level.
“Falls in sterling have prompted some international buyers to re-enter the market, while there has also been a fair share of speculative bids from those hoping to secure a bargain.
“Against this context, sellers have generally taken a pragmatic approach around pricing without having to slash their expectations.”
The proportion of international buyers and sellers in London fell in the first quarter according to Hamptons International, despite a fall in sterling making the capital an attractive proposition – raising questions on whether further falls in the UK currency will bring the prime property sector the boost it is expecting.