Prices of homes in Prime Central London have fallen across all sectors in the second quarter of the year and over the whole of the last 12 months according to latest research by JLL.
The consultancy says the sub-£2m market continues to be the most resilient, although here too prices have fallen in each quarter since Q1 2015. On average prices in this sector have fallen 2.6 per cent over the 12 months to June this year.
Prices in the £2m to £5m market have been declining for 18 months now, with prices down 2.9 per cent during the year to June 2016.
Prices in the £5m to £10m price bracket and the £10m-plus market have been impacted most notably by the stamp duty changes, says JLL. Prices have dropped by 4.4 per cent in the year to Q2 in the £5m to £10m market and by 7.1 per cent in the £10m-plus market.
The sales market was notably quieter during the second quarter of the year thanks to a combination of EU referendum uncertainty, the slowdown after the stamp duty surcharge deadline, and the lingering effect of higher stamp duty for high value properties.
JLL says that since the vote to leave the EU, and the subsequent weakening of Sterling, several international buyers have been more active although a good deal of uncertainty remains, especially in terms of the medium-term PCL outlook.
The number of properties on the market increased again during Q2 as vendors failed to sell or elected not to sell at prices unacceptable to them.
“This additional choice and bargaining power for purchasers is contributing to both the scale of price falls and the slowdown in transactions” warns Neil Chegwidden, residential research director at JLL.
“Given recent uncertainty it is unsurprising that prices have weakened again” he says.
JLL defines Prime Central London as the postcodes of SW1, SW3, SW5, SW7, SW10, W1, W8 and W11.