Prices for luxury properties in London fell by an average of 16%

The real estate market is always a struggle between buyers and sellers.

The sellers are overpricing, buyers strive to knock her. In the market of real estate of London , this fight is always sharp, uncompromising, and, it seems, is still the outcome of this struggle was in favor of the sellers.

However, the last of the melon all the more confidently testify that the situation is reversed. Asking prices for property in London and the South East of England are falling, buyers get desired discount and it seems that this situation will last for another several months.

The drop in prices of luxury property in Central London is not a surprise. After several years of inflation in the market has significantly increased offer. So, if in 2013 an average of 1000 objects was put on the market of elite real estate in Central London, now more than 2000 units for sale available on the market and most of them are apartments. Over the past three years prices have fallen on average by 16%. And in some areas, for example, in Belgravia, the price drop was 36%.

The average market of the UK property asking prices fell 0.2% in August 2016 , but are still 4.6 percent higher than in September 2015. The fall of prices in different areas of the UK according to the Home.co.uk., recorded in 6 of 9 regions of the UK. Falling prices in London and the South East due to high Stamp duty and increasing supply. So, the supply of new housing in London rose by 13%, in the Southeast by 15% compared to increases of 9% in the whole of the UK.

However, there are still regions of the UK where property prices show extraordinary growth. So, in the East of England, despite the increase in supply, prices have soared by 12%, making this region the most attractive for investment over the last year. Prices in the Mid-West region of England increased by 6.4%

Except the East of England, prices rose in the North-West, South-West and West Midlands 3%, 3% and 2.4% respectively over the last 6 months. This happens against the background of decrease in supply in these regions, which sometimes reached 10% drop.

Thus, the market of real estate of great Britain is now multi-directional movement. It is too early to talk about the impact of Brexit on the market. It is obvious that Brexit was only able to impose uncertainty on the falling price markets, where trends have formed much earlier.

® Maxim Savitsky. 05.09.2016 G.

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