UK Edition
This is the 'bottom of the market' for the most expensive properties in London
The woes of falling prices and low property transaction levels in central London will end this month, according to estate agency Humberts which has called the "bottom" of the market.
Sales of the most expensive properties in London were down 44pc in the year to the first quarter of 2017 compared to the same period last year, according to JLL. But this was artificially inflated by the surge of purchases during that time to the beat the increase of stamp duty for second home buyers and landlords.
Prices of these homes, which are worth an average of £2.1m and are in the most expensive postcodes, have risen 0.7pc since the fourth quarter of 2016, but this is still 0.5pc lower than the first quarter of 2016. The average price of such a home remains 4pc below their peak in the fourth quarter of 2014.
Despite this seemingly negative environment Humberts, an estate agency which operates outside the capital, is opening a flagship office in Mayfair and entering the prime central London property market for the first time.
David Adams, the director of the new office, said that "on the basis that consecutive price reductions have stopped, walk-in enquiry has measurably increased and houses on the market for two years are now going under offer across all price brackets, we are calling the bottom of the market in April 2017 within prime Central London."
Neil Chegwidden, of JLL, said that optimism in this prime market was improving with demand up among international buyers due to the weak pound. But turnover is still reduced, with very low numbers of the most expensive homes for sale.
He added: "The biggest hurdle yet to jump is shifting vendor’s expectations on price. Many are still too optimistic with both valuers and purchasers asking vendors to consider lowering their asking price."
Mr Adams, meanwhile, argued that vendors have already started to view the market more realistically, demanding lower asking prices. Properties in prime Central London suffered from the changes to stamp duty in December 2014, when it was hiked for those worth more than £925,000.
Last year, the market made up only 2,350 transactions, compared to the average of 5,000 per year in the eight years prior to the financial crisis.