According to estate agent, Your Move, increased uncertainty surrounding Brexit is the most likely cause for the 25% drop in value of homes in the smartest addresses in central London.
However, according to London property lawyers, Collyer Bristow, international wealthy investors remain active and are snapping up some (relative) bargains.
Hedge fund billionaire Ken Griffin this week purchased 3 Carlton Terrace – a 20,000sqft Georgian house overlooking St James’s Park – for £95m, reduced from £145m yet still making it the most expensive home purchased in London since 2011.
Janet Armstrong-Fox, Head of Private Client Property at Collyer Bristow said: “Despite the Government’s best efforts, London remains an attractive destination for the world’s super rich to buy and own property. Despite Brexit, it will remain a global gateway city, boasting world class education, retail, and cultural assets.
Even with the current political turmoil and compared against other EU cities, it remains politically stable with a transparent tax regime. That is unlikely to change dramatically anytime soon.”
Collyer Bristow adds that the prime residential market in London has been over-heated for some time and a correction is all but inevitable.
Janet Armstrong-Fox adds: “That prices have fallen is not surprising. And that means there are some amazing properties available at considerable discount. Super rich bargain hunters looking for trophy assets are already moving in, particularly from China and the Middle East.”
London remains one of the most expensive cities in Europe in which to buy residential property, making it hard for those living and working in the capital, even on very high incomes, to purchase property.
Janet Armstrong-Fox says: “A correction on London house prices will undoubtedly be welcomed by those looking to buy, although less so by sellers. Yet a fall in prices alone is unlikely to keep the market fluid. The government’s changes to Stamp Duty has made it very costly to move home and is holding back the market. We would urge government to reconsider its approach to stamp duty to keep London’s housing market moving.”