According to Savills: “Prime central London continues to present a good buying opportunity as prices are 18.2% less than the 2014 peak”.
Are The London Property Market Prices Falling?
In May 2014 Sterling was $1.69 and today it is $1.24, i.e. sterling is 27% lower, so the London property market is looking considerably cheaper for most international buyers.
However, and I apologise as I know I bang on about this, please beware of “average stats”. As my rather pompously named McGivern’s Law states: “If you see a London property market statistic with a decimal point in it, you can guarantee it’s wrong”.
For example, I inspected a house with direct access to communal gardens in Notting Hill a few weeks ago. They had 32 viewings in 24 hours, one asking price offer at £8.25m and two offers above that within 48 hours, which then went to sealed bids with only people willing to offer over £9m invited. In 2014 that house wouldn’t have sold for £7m. Yet the averages would tell you that it should have sold for 18.2% less than 2014!
I will go into this in more detail in my London property market analysis Letter which you will receive soon.