Asking prices of homes in London are actually falling, according to a report by property agents Propcision.
The study found that roughly 40% of properties listed for sale in Earl’s Court have had their price cut since coming to market. While 35% of properties listed for sale in Chelsea and Knightsbridge have seen a price reduction, 29% of properties in Hammersmith and Fulham have seen asking prices falling too.
Michelle Ricci, co-founder of Propcision, said: “The data suggests that we are seeing resistance in the central London market. To make an analogy, it’s like throwing a ball into the air, at some point the ball will stop moving upward and shift downward. In statistics, we call this a point of resistance.
“The upward trend prime central London enjoyed for the past few years has started to show signs of resistance. This is typically associated with the start of correction although not necessarily a downward trend –as in the ball analogy. We feel the data suggests asking prices are holding steady with levels seen in the past six months. However, that said, there are particular areas of vulnerability that may start to show demonstrable evidence of a downward trend – most notably new-builds.”
Take a look at London areas where asking prices have been slashed (borough and percentage of properties on the market having a price reduction):
Kensington and Chelsea 33%
Kingston Upon Thames 30%
Hammersmith and Fulham 29%
Richmond Upon Thames 26%
Waltham Forest 23%
Tower Hamlets 19%
Barking and Dagenham 16%