Central London prices static

Central London house prices in London have remained static – with reductions bringing the asking price to the same level as last year.

Since being listed for sale 40% of Earl’s Court properties have seen price reductions and 35% have been reduced in Chelsea and Knightsbridge.

Michelle Ricci, co-founder of Propcision, said: “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.”

Non-UK nationals made 69% of Prime Central new build purchases in London, while non-UK residents made 49%.

Propcision said that Central London new builds are therefore more vulnerable to a correction as foreign investors are more likely to view the economic and political climate in Britain to be uncertain.

Tax and stamp duty changes alongside falling sterling and unfavourable housing indices for Central London are also factors.

Ricci added: “It has already been observed that certain pockets within Central London postcodes have undergone sharp asking price reductions for new builds.

“However, values still remain relatively high. We are monitoring these areas for evidence of accumulation of housing stock alongside further reductions.

“If this proves to be the case, then the market could change from “steady” to downward for properties fitting certain characteristics. This may subsequently affect other areas of the market.”