x
By using this website, you agree to our use of cookies to enhance your experience.

Demand for the most expensive homes in central London has slumped, according to research from online estate agent eMoov.co.uk.

The company said that the proportion of properties sold for £2 million or more against the number listed had dwindled to 11.2% in the 17 most prestigious neighbourhoods in the capital.

The five parts of the city worst affected so far in 2015 were St James's, where 0% of prime property has been sold, followed by Marylebone (6.4%), Primrose Hill (6.5%), Maida Vale (6.7%) and Fitzrovia (9.1%).

The market has been adversely affected by a number of factors, said Russell Quirk, the founder and CEO of eMoov.co.uk.

Reform of the stamp duty system revealed by Chancellor George Osborne in December means that tax on high-value purchases has increased significantly.

There is also the threat of a mansion tax on more expensive properties if a Labour government is elected in May.

Quirk said: "It's clear that prime central London has been devastated where the property market is concerned. For a while now certain areas have seemed impervious to changes in the property market elsewhere in the country. However it is apparent that this is no longer the case as the capital has been brought to its knees."

Even the current political situation in Russia has had an impact on property demand, Quirk added.

"We believe that by Q2 or Q3 this will be confirmed when the likes of Halifax, Nationwide and Hometrack release their latest house price indices," he said.

"We also predict demand will remain low until the election is over. If Labour don't win then it will offer slight comfort to those looking to buy in these areas and without the fear of a mansion tax we could see demand regain some stability, but that is yet to be seen."

The eMoov.co.uk figures found that Islington was the area where the greatest proportion of prime property was being sold: in this part of London, almost a quarter of listed homes had been snapped up since the start of the year.

Comments

MovePal MovePal MovePal