£100,000-plus asking price cuts commonplace in central London

Figures from London data consultancy Lonres show that since the referendum the average price cut on homes across most of central London has been £100,131.

In the same period last year the average asking price reduction was only £59,573.

The data, prepared for the Evening Standard, also reveals that in postcodes around high-priced Kensington, Knightsbridge and Mayfair the typical reduction is now a whopping £171,321 - up from £150,120 in the three months before the referendum.

Lonres says 46 per cent of central London homes sold since the vote have had their prices reduced; in the same period last year, the proportion was only 36 per cent.

The Standard cites a three-bedroom, ground-floor flat on Belgravia’s Eaton Square which went on sale in January with Hamptons International for £6.35m and was this month slashed to £5.995m. A two-bed flat in a new scheme in Fitrovia is also quoted as having its June price of £1.7m cut to £1.55m this month.

The Lonres report - which is in line with other recent surveys giving a pessimistic picture of the capital's market - says that in the run-up to the referendum, the volumes of price reductions across central London fell significantly. This was because few vendors were reducing their prices, with most waiting for the referendum to take place before deciding what to do.

Meanwhile property consultancy JLL is forecasting that by the end of 2020 the average house price in two thirds of London’s 33 boroughs will be in excess of £500,000.

Tower Hamlets is expected to pass the £500,000 mark in 2018 meaning all of Inner London, with the exception of Newham, will average above £500,000 within the next two years.

“Brent in the north west of the vapital is the next borough expected to pass the £500,000 average mark, doing so by the end of 2016. The neighbouring boroughs of Ealing and Harrow are expected to follow suit in 2017 and 2018 respectively. Kingston-upon-Thames, in the south west of London, is expected to pass £500,000 in 2017, while Bromley in the south east and Waltham Forest in the north east will do so in 2020” explains JLL’s residential research associate director Nick Whitten.