Property prices in Central London continue to fall

A year after historic vote for British exit from the EU, the price of luxury property in London continues to decrease, showing a record decline over the last quarter.

Despite the fact that for several months, many agencies assert that the market has bottomed out and the potential for lower prices for luxury property in London is exhausted, the analysis, published by international estate Agency Savills shows that the average price for real estate class “luxury” in London fell in the second quarter by 0.9% over the year, the drop was 5.3% , and since their peaks in 2014, it fell by 6.9% in price.

For 10 years prior to 2014, the total profit received by buyers investing in the market of elite real estate of London, was 30% . Before the referendum last year, it would seem that the market went up after the increase in stamp duty in 2014, but weak shoots of optimism was demolished political and economic uncertainty that arose in connection with Brexit. It is noteworthy that the political events – vote and change of government affect primarily the market of elite real estate of London. Cheap property prices, which continue to grow, feels great. The demand for inexpensive real estate prompted primarily by the shortage of housing, that is, the imbalance of demand and amount of supply in the market. A lot of support in the sector of affordable housing England its the UK government allocating subsidies to families, vivre buying a house.

The most vulnerable area because of the complex circumstances became a Central part of London. According to Savills, prices in Central fell for the last three months is 1.3%, for the year to 6.8% , as compared with its high of 2014 by 14.4%.

Meanwhile , the market is London real estate has moved in different directions and some areas, such as Kensington, Notting frail, Canary Wharf, saw a very slight decrease in prices amid cautious action buyers who mainly represent the financial sector of London.

In the Central parts of London sale move only in the case when the sellers put realistic prices reflecting the market decline over the past two years. With the introduction of high stamp duty, the flow of speculative buyers has decreased and the demand dictate reliable buyers. But the real estate market in Central London remains attractive, safe and reliable protective asset in the global aspect and enjoys a good demand from those buyers who are focused on medium and long term.

® Helen Entree. 01.07.2017 G.

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