London’s richest boroughs hit by housing slowdown

Posted under News by Michael

The UK housing market’s traditional barometer, London property, is shrinking in key commercial and residential areas, according to reports from leading estate agents. An average 1.5% slump in housing prices has been reported by estate agent Savills in prime locations like Chelsea, Holland Park, Knightsbridge, and Belgravia, during first 3 months of the year, following 2% fall in the 4th quarter of last year.

Regarding commercial property, Savills informed about sharp decline in demand in the City of London’s office market, while demand for retailer has subdued across the UK. High-end estate agent Knight Frank also confirmed downslide for the Capital, where only ‘super prime’ residential properties above £10 million could fetch more value last month.

According to Liam Bailey, residential research head at Knight Frank, month of April results in further weakening of property market with poor growth across the board. He adds that super prime market has remained the lone bright spot in the UK over last six months.

London homes which could fetch 102% of average asking price are now being sold at 96% of asking price, the lowest since 2004. Liam Bailey believes that even after making further cut in base rate, real impact housing market will come only when the Bank of England’s special equity scheme supports money market and makes lenders feel confident lending each other.

More