Cluttons predicts that the London residential property market will fall a further 10% before prices begin to recover in a year to 18 months’ time.
This follows new Cluttons’ data which shows that average house prices are down 6.8% and 4.6% in prime Central London and core Central London respectively over the past 12 months, with no areas registering any increases. Average house prices in prime Central London stand at £2.78 million and £1.2 million in core Central London.
James Hyman, Head of residential at Cluttons said: “The London market still faces significant challenges in terms of affordability, buy-to-let investors and outdated infrastructure. These factors are putting pressure on prices and the reality is that the sooner sellers take the pain and adjust prices down, then demand will start to increase and the market will start to go up as more buyers emerge.
“Another important point that we need to remember is that overseas buyers haven’t left London, but they need to feel confident that they are getting fair value for money before they come back into the market. When this happens, they will be an important driver of recovery.
“In areas of core Central London where prices are now down 20-25%, properties are getting significant interest and selling in a good time frame.”