The prime central London property bubble appears to have burst as demand falls and a surge of new stock saturates the market.
Demand for property in prime central London is down -8% since the election to hit its lowest level since the start of the year.
The inventory of properties for sale has increased by 9.9% since the election and 21.3% since the start of year, according to the latest PCL Hotspots Index from online estate agent eMoov.co.uk, which monitors demand for property above £2 million.
The figures confirm that the top end of the market is still in decline, despite reassurances by many high street estate agents, eMoov said.
Areas seeing the sharpest fall in demand in the last three months include Maida Vale (-66%), Chiswick (-53%), Fitzrovia (-33%), Primrose Hill (-25%), Islington (-19%), Knightsbridge (-16%), St Johns Wood (-14%) and Belgravia (-12%).
Chelsea (-5%), Mayfair (-5%) and Fulham (-4%) have all also seen a drop in demand.
Pockets of prime central London have seen demand increases the election, including Notting Hill, which has sold 112% since June, nearby Holland Park (+59%) and Kensington and Marylebone (both +17%).
With average property demand across the London up 37%, demand in prime central London is substantially lower than the rest of the capital.
Russell Quirk, founder of eMoov.co.uk, said: “We, along with many others, predicted a tough time for prime central London since 2014, and it would seem this has now well and truly come to fruition.
“There were signs that the top end of the London market might be thawing when we ran our PCL Hotspots Index back in May, but it seems it’s not just the British weather that has turned with a cold snap.”
"Although there are areas where demand has picked up, most notably in Notting Hill and Holland Park, this hasn’t been enough to turn the tide due to the increase of stock flooding the market.
"With prime central London property listings having increased by more than 20% since the start of the year, it would seem that foreign London property investors have started to cash in their chips, whilst the high-end estate agents might have started pawning their Rolexes.”