U.K. Market Meltdown Shocked London's Luxury Real Estate
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Loading... - Isla Dixon
- 27 Oct 2022
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Though prime property markets globally tend to offer a level of stability that the overall market does not, London’s high-end market has not been unscathed by the economic and political turmoil in the U.K. over the last few weeks, according to a report Monday from LonRes.
The mini budget—the swath of economic changes announced at the end of September by newly minted Chancellor of the Exchequer Kwasi Kwarteng—was the event to have the most significant impact on the U.K.’s property market.
During the last seven days of September in London’s luxury market, the property data firm said the number of sales falling through jumped 88% compared to the same time last year, the number of price reductions spiked 76%, and the number properties withdrawn from the market increased 48%.
While one week’s data would typically be taken with a grain of salt, “the underlying trends are indicative of what happened, as it happened,” the report said in its analysis of the city’s prime market, which includes upmarket neighborhoods such as Chelsea, Notting Hill, St. John’s Wood and Hampstead.
“The events of the last two weeks have added an unwelcome degree of uncertainty to the U.K.’s economy and housing markets,” Anthony Payne, managing director of LonRes, said in the report. “Prime London has not been immune to that uncertainty with evidence of more cautious buyers. Sales falling through, properties withdrawn from the market and price reductions all spiked in the week following the mini budget.”
In more positive news, the number of properties that went into contract during that final week of September was 23% higher than last year and new listings rose 22% over the same period. Read More…
