For the first time since 2007, prices for luxury housing in Central London began to fall

 Property prices in London’s most expensive districts began to fall sharply, which immediately caused concerns that the real estate market of London and even England can be a Domino effect.

Data from online real estate portal Home.co.uk indicate a drop in property prices in London in the 10 most expensive areas, all of which are located in the Central part of London.

So, in one of the most exclusive areas of Belgravia – prices fell by 8% in the 12 months preceding September. Over the same period in Westminster prices fell by 6.3%, in SOHO by 5.7% , in South Kensington by 4%, in Chelsea by 3.5 % and in Charring Cross by 2.7 %.

Analysts of the markets of real estate attribute this fact to two factors: the increased availability and cheapness of mortgage loans and a significant increase of the market. In addition, of course, the market in the most expensive districts of London has been severely overheated.

Indeed, last year was just incredible on the residential real estate market of the capital. Thus, on average across London in the past year, according to various estimates, prices rose 19% – 23%. But in some regions the price growth exceeded 30 %. Not surprisingly, buyers are not willing to buy houses at these prices and the sellers have reduced their appetite.

The cooling of the housing market in London is happening now not only in London but throughout great London. But now it is extremely low. Throughout the greater London area from August to September, asking prices fell by only 0.1 %. At the same time in England and Wales, prices rose on average by 0.2 % . Today to speak with confidence about the falling prices can only mean the Central part of London, but don’t underestimate the possibility that this effect could spread to the rest of England.

The residential property market in Central London is a kind of engine-an indicator for the whole of the UK property market. He was the first to show growth after the crisis in 2007, stimulating investor interest in London and encouraging growth in property prices in all London areas, and then a wave effect extending this phenomenon to other regions of the United Kingdom. Now the price of residential property in Central London is so high that the interest of investors still awaited on other, less expensive areas of London.

® Alice Morgan. 04.10.14 G.

Luxury housing in London:

TREVOR STREET, KNIGHTSBRIDGE SW7 £ 7,950,000

KENSINGTON SQUARE, KENSINGTON W8 – £ 7,000,000

PARKSIDE, 28-56 KNIGHTSBRIDGE SW1X – £ 6,995,000

HENRY MOORE COURT, MANRESA ROAD, SW3 £ 12,000,000

SLOANE STREET, KNIGHTSBRIDGE SW1X – £ 12,950,000

QUEENSBERRY PLACE – £ 12.5 million

MONTPELIER SQUARE, KNIGHTSBRIDGE SW7 – £13.3 million

KNIGHTSBRIDGE SW1X – £19.5 million

Mansion on Mayfair £ 32,999,950

Luxury apartment – Hyde Park – £65 million