According to analysis of Land Registry data from London Central Portfolio (LCP), sales of luxury homes have fallen by 86%.
Their research revealed 7 times fewer super-prime properties (above £10m) sold in the three months to August 2016 compared to the same period last year and the average price paid for the top 5 most expensive sales fell 25% from £22m to £16.3m. Furthermore, no super-prime new build units were sold, compared with last year where they made up 23% of sales.
Commenting, Naomi Heaton, CEO of LCP, said: “A price correction was inevitable and is widely reflected in reports of price discounting. Whilst the long term outlook remains compelling as a global destination with limited stock available, the luxury market is likely to experience continued instability.”
With the luxury market in the doldrums, investors and developers would be wise to turn their attention to the mainstream market where, according to HMRC’s Annual Stamp Tax Statistics, sales of homes between £250k and £500k increased by more than 20% in the year to September.
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Our high spec, high-tech finishes have earned extensive press coverage and won multiple awards, including a WhatHouse? Bronze and two First Time Buyer Reader’s awards. Features include granite worktops, fully fitted Bosch appliances, hard wood flooring, Nest smart thermostats and designer bathrooms.
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