House prices in London’s most exclusive districts FALL by up to 25 per cent as buyers put off making offers until Brexit deadlock is cleared
- House prices have dropped in Kensington and Chelsea and Westminster
- Other upmarket areas in the capital, such as Hammersmith & Fulham and Camden, have had falls of more than 10 per cent
- A Belgrave Square home sold for £60 million after it was listed for £100 million
House prices in some of the most expensive areas in the capital have fallen by up to a quarter over Brexit uncertainty.
London homes on the market in Kensington and Chelsea and the City of Westminster have been reduced dramatically over the past year as higher taxes and Brexit dampens demand, a study found.
The average house value in the exclusive postcodes has fallen by up to £500,000 in the year to November, according to Your Move.
On average London’s ten most expensive boroughs are down by 9 per cent.
Other upmarket areas in the capital, such as Hammersmith & Fulham and Camden, have had falls of more than 10 per cent, the estate agency said.
Price reductions on some prime properties have been far greater. A five-storey mansion in Belgrave Square was sold for £60 million in December, despite having been listed initially for £100 million.
Oliver Blake, of Your Move, said: ‘Due to political and economic unrest, it is understandable why buyers and sellers may be taking a ‘wait and see’ approach to the property market, but in turn, as demand wavers, it means that property may become more affordable to more people.’
Homes have gone down in value by up to 25 per cent across London’s most expensive boroughs
Other agents have said that steep price falls in London are also a result of the market finally adjusting to significantly higher levels of stamp duty on the most expensive homes, after increases in December 2014 and April 2016.
The stamp duty payable on a £2.5 million property is £213,750, rising to £513,750 on a £5 million property.
Your Move, Britain’s biggest estate agent, said that the market outside London remained subdued, with house prices in England and Wales up by 0.6 per cent over the year.
House prices in Chelsea have dropped significantly as well as homes in other areas of London
In real terms, with the present rate of inflation 2.2 per cent, this means that prices are falling.
The best-performing regions over the year were the East Midlands and Wales, both up by 3.6 per cent.
Last week the Royal Institution of Chartered Surveyors reported that house prices were falling at their fastest rate in six years and that the outlook for sales was at its weakest in two decades.
It said that the declines were being fuelled by the lack of clarity over Britain’s departure from the EU.