Common worth of prime London property bought drops sharply year-on-year

Offered property costs throughout a few of prime London’s hottest neighbourhoods have fallen by as a lot as 60% up to now this 12 months when in comparison with the identical interval in 2024, the newest market evaluation by prime London property brokerage, Jefferies London, has revealed.

Jefferies London analysed bought value data from the Land Registry, trying on the market values achieved because the begin of the 12 months* throughout six of London’s most wanted prime areas and the way this present market efficiency compares to the identical interval final 12 months.

The research discovered that all the six areas analysed by Jefferies London have seen vital reductions in bought costs, though some have been extra vital than others.

No the place extra so than Mayfair, the place the typical bought value of houses bought up to now this 12 months sits at simply £1.5m. While nonetheless a big price ticket, that’s a discount of 60% when in comparison with the typical bought value seen throughout the identical interval final 12 months.

Throughout Chelsea, the typical bought value seen up to now this 12 months presently sits 47% down 12 months on 12 months, while Belgravia (-44%) and Westminster (-28%) have additionally seen among the most notable corrections.

Kensington (-21%) and Hampstead (-23%) have been impacted to a lesser extent, though each areas have nonetheless seen bought costs fall by round a fifth.

Maybe extra telling, is that of the six prime neighbourhoods analysed by Jefferies London, simply two are dwelling to a median bought value north of the £1m mark.

Founding father of Jefferies London, Damien Jefferies, commented: “The prime London market is world famend and so the present slide in bought costs may be very a lot a transactional problem and positively not one which displays an precise drop in values.

“In a market that operates very a lot on a high quality over amount foundation, a single transaction can dramatically change the image. For instance, as lately as 2023 we noticed notable gross sales to the tune of £21.5m in Kensington Palace Gardens, £20.4m in Queen Anne’s Gate and £12m on Park Lane, all of which might have a big influence on total market values.

“Because it stands, we’re merely not seeing these large ticket purchases within the present market and, while properties are transacting, they’re doing so on the decrease tiers of the market.

“That’s to not say that we aren’t seeing sturdy curiosity from prime London homebuyers and, because the market continues to settle over the rest of the 12 months, we anticipate this curiosity to begin to convert, cultivating bought value values within the course of.”

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