10%+ prime London price cuts "not uncommon" says buying agency

Another agency says price reductions of 10 per cent or more are often found in some prime central London areas such as Kensington, Belgravia and Chelsea.

Philip Eastwood, head of The Buying Solution - the buying arm of Knight Frank - says that these areas have had two years of quiet trading.

He cites the three months to the end of November recording a 25 per cent annual drop in transactions, plus a fall of 14.5 per cent in the number of properties launched on to the open market in the final three months of 2016.

“For properties that are not best in class, double-digit percentage asking price reductions are not uncommon” Eastwood notes, although he adds that more recent realistic pricing by some vendors has triggered life into the market.

“The headlines have all been about Brexit but buyers are doing their homework and realistic asking prices are stirring activity” he suggests. 

Eastwood’s counterpart in the countryside - Mark Lawson, The Buying Solution’s partner handling rural estates - says the weak pound since the EU referendum has helped bolster international interest in selected elements of the country market.

“Interest has been particularly robust for properties which qualify for the mixed use rate of stamp duty, at a flat five per cent” says Lawson, referring to farms and some estates which fall into this category. 

He says 47 per cent of TBS client buyers with budgets of over £10m are internationally based, reflecting the weakness of sterling and its role in attracting high net worth purchasers.