Prime London prices down 16% in five years
House prices in Prime London have typically fallen by 16% from the 2014 peak, research from buying agency Ludgrove has found.
By borough this can be higher or lower, for example in St George’s Hill prices are down by a huge 39%, in Bayswater & Maida Vale by 22% and in Kensington, Notting Hill & Holland Park by 20%.
Fraser Slater, chief executive of Ludgrove, said: “These figures show there are many bargains to be had for buyers, especially overseas buyers which have the added benefit of purchasing in a depressed currency.
“The decline in prices is similar to where previous historic Prime London property recessions have troughed and then recovered.
“Now in the fifth year of decline, the downturn has also far outstripped all other Prime London property recessions in the last 35 years, meaning a recovery is long overdue, and expected once Brexit is resolved.”
Overseas buyers are well placed to capitalise on the weakness in the market and exchange rate.
For example, combining the average 16% decline with the 18% depreciation of the sterling against the US dollar, buyers can now purchase Prime London property -34% cheaper than the peak 5 years ago. For an Israeli Shekel buyer, the discount is -42%.
Slater added: “Clearly Dollar-pegged currencies such as the Dirham, the Hong Kong Dollar and the Singaporean Dollar are in a strong position.”