More properties in the Royal Borough of Kensington & Chelsea (RBKC) have had their prices cut since coming to the market than anywhere else in London.
Property analysis firm, Propcision, has released new research which shows that in Earl’s Court alone, “roughly 40% of properties listed for sale”, have “had their price cut since coming to market.”
This trend continues throughout the central London generally, with approximately 35% of properties in “prime” areas such as Chelsea and Knightsbridge being reduced.
On average, nearly a third of properties listed for sale in RBKC have been reduced by an estimated 8% of the original asking price.
Despite the analysis showing that sale prices are being cut across the whole of London, research done by Propcision also indicates that “prices in central London are remaining static”. With the reductions actually appearing to simply bring asking prices back “to the same level as last year”.
Co-founder of Propcision, Michelle Ricci, explains, “the data suggests that we are seeing resistance in the central London market”.
“The upward trend Prime Central London enjoyed for the past few years has started to show signs of resistance”, Ricci adds, “this is typically associated with the start of correction although not necessarily a downward trend”.
Although Propcision believes that “asking prices are holding steady with levels seen in the past 6 months”, Ricci warns that “there are particular areas of vulnerability that may start to show demonstrable evidence of a downward trend – most notably new-builds.”
Likewise, fellow Royal Borough Kingston Upon Thames has had the prices of 30% of homes listed for sale reduced. In neighbouring Hammersmith and Fulham, Wandsworth, and Westminster sale prices have been reduced by 29-28%, with the most cut postcodes being W1, W2, and SW8.
Earls Court residents recently launched a formal complaint with the European Commision over the planned £1.4 billion regeneration plan with Hammersmith & Fulham council, claiming that the land had been undersold and essentially represented “unlawful state aid”.
News that new build houses could be particularly vulnerable will particularly interest residents in RBKC as extensive “regeneration” projects are taking place throughout the borough.
Following the release of research by real estate consultant, Knight Frank, showing that between 2011 and 2013, “non-UK nationals made 69 percent of prime central new-build purchases in London”, too much uncertainty in the market could see foreign investors sell off their stakes in the British market.