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10th August 2018
Coutts report shows luxury London property is still a buyer’s market
The latest Coutts London Prime Property Index shows that luxury London property is still a buyer’s market with low prices and high discounts, but that could be starting to change. Currently, half of London property worth £1m or more is being sold at a discount with buyers getting a little over 11 per cent on average, according to the latest analysis from Coutts. But while prices continue to fall, they are doing so at a slower pace; they fell 0.3 per cent in the three months to June compared with a 3 per cent drop in the first quarter of the year.
Coutts Managing Director Mohammad Kamal Syed said: “Prices falls are slowing and we expect them to remain relatively flat for the rest of 2018. The average discount buyers are getting has also dropped slightly since the first quarter which is another sign that things could be changing. While London’s prime property scene remains good for buyers with a long-term investment horizon, the market is still very subdued as many sellers wait for Brexit uncertainty to pass.”
The findings come in the latest edition of the quarterly Coutts London Prime Property Index, which takes a detailed look at the high-end market across the capital. Focusing on 15 areas, and covering 60 different postcodes in Prime Central London, the Coutts London Prime Property Index provides insights into the Prime (£1m-£10m) and Super Prime (over £10m) property market as well as local property information by postcode. Data is provided by LonRes, a leading provider of real-time information to London’s top residential professionals.
The latest numbers show a mixed picture when it comes to getting a good discount on a luxury London property. For example, two-thirds of high-end homes in Hampstead & Highgate are sold below asking price – 13 per cent off on average – while under a third are getting a discount in Wimbledon, Richmond, Putney & Barnes where the average amount off the asking price is 7.1 per cent.
Coutts Head of Lending Propositions George Toumbev said: “The numbers tell very different stories across the 15 parts of London covered by our index. There are even very different trends in areas right next to each other, reflecting the sheer dynamism of the capital and the fact that any given area very much has its own sense of identity. This underlines the importance of doing your research and really getting to know the market in the neighbourhood you’re interested in.”