Prices of high end homes in prime central London fell in the second quarter, down 5.9% from a year earlier, as the uncertain economic outlook weighs on the housing market.
Figures from real estate consultancy JLL’s residential research team compared the values of properties in prime central London (SW1, SW3, SW5, SW7, SW10, W1, W8 and W11) priced at £850,000 or more.
The company found that prices in the three months to June 30 fell for a third consecutive quarter.
They were down 2.1% from the first quarter, and prices are 6.8% lower than they were from a peak in the third quarter of 2022.
Looking at the higher end of London’s prime market where for-sale signs are £10 million or above, pricing was more resilient, down 0.8% in the 12 months to June.
JLL pointed out that buyers in the sector are typically less exposed to the mortgage crisis that is making deals unaffordable for a number of purchasers.
It said analysing sales across London boroughs over the last 12 months shows 44% of homes in Westminster and 49% in Kensington & Chelsea were purchased in cash. That compares to 19% London wide.
However, Marcus Dixon, the firm’s director of UK residential research said: “The implications of stubborn inflation on the UK mortgage market are hampering activity in prime central London. While fewer buyers are heavily indebted - almost half buy cash - uncertainty surrounding the short-term outlook is impacting prices.”
The update came on the same day that a number of High Street lenders once again pushed up the rates on their home loan deals.
