Prime Central London Property Market Continuing to Drop
The prime central London property market is continuing to drop, according to the latest report from Knight Frank estate agents.
It found that the amount of applicants decreased by 30% in September, compared to the same month in 2014. House prices also fell, by 0.3%.
The number of properties exchanged in the three months to the end of September was around 17% less than in the same period last year.
A partner at Knight Frank, Noel Flint, believes that currency fluctuations and Stamp Duty changes are deterring foreign buyers from the London market.
He says: “There are far fewer Russian buyers in London looking to spend £5m to £10m. Their budgets have been trimmed, as the rouble is a fraction of what it was. Ditto the Far Eastern buyers.
“Now the pound is so strong, London is not seen as such good value for money.”1
As a result, Knight Frank has reduced its annual house price growth forecast for 2016 from 4.5% to 2%.
Even if you do not own a property in the prime central London market, it is important to be aware that trends in this sector can spread to other parts of the capital, and sometimes across the country, particularly the South East.
Ensure you keep up to date with the property market in your area, and understand how it could be affected by what’s going on in London.