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Luxury home sales in London have fallen as demand and the number of transactions have declined, according to economic data. Sales of homes worth more than £10 million ($13.2 million) in the year to July 31 fell by 22% compared with the previous year, according to the latest report from British real estate firm Knight Frank.
The picture was worse for the most expensive homes, with only 10 deals over the past 12 months for homes worth more than £30 million, compared with 38 in the previous period, Bloomberg reported.
The total value of luxury home sales in London during the 12 months to 31 July 2023 amounted to £2.66 billion, compared to £4.3 billion during the 12 months to 31 July 2023.
“Confidence in the heart of London’s prime real estate is falling sharply,” said Camilla Dale, estate agent and founder of Black Brick. “The current market reminds me of the financial crisis in terms of what we’re seeing in terms of the value of homes for sale, price reductions and the nervousness from sellers in the market.”
In contrast, data published earlier this week showed that house prices in Britain rose during the current month, as activity in the market increased early ahead of the traditionally busy autumn, after the Bank of England decided to cut its main interest rate, which led to a decline in mortgage interest rates, as consumer confidence improved after the victory of the opposition Labour Party in the recent general election.
House prices rose 0.8% month-on-month in September, after falling 1.5% in August, the Rightmove real estate website reported on Monday.
On an annual basis, housing prices rose by 1.2% during the current month, after rising by 0.8% in August.
The Rightmove website said that September usually witnesses a monthly increase in prices, but the increase during the current month was double the average increase in such a month in the long term, as the support for prices comes as a result of the high level of market activity.
