Pastor Real Estate
Prices for luxury property in London dropped over 2015.
If you follow UK property news, you may have heard that the London bubble could be about to burst.
Evidence to suggest that the London property bubble is deflating has started to stack up. Amongst other factors, prices in the most expensive areas of the capital have fallen, and in February, property funds saw big outflows.
To add to that waning sentiment, property analysis firm Propcision has released research showing the areas of London where the largest proportion of properties have had their prices cut.
Propcision said the research suggests prices in London are remaining static as sellers slash prices to keep them at last year’s levels.
Michelle Ricci, co-founder of Propcision, said that the upward trend prime central London property has enjoyed for the past few years has started to show signs of resistance.
“We feel the data suggests asking prices are holding steady with levels seen in the past 6 months.
“However, that said, there are particular areas of vulnerability that may start to show demonstrable evidence of a downward trend — most notably new-builds.”
Check out the list below.
32. Bexley
Properties on the market to have prices reduced: 11%
We kick off in south east London with the borough of Bexley, home to Hall Place, a key area designated for urban regeneration. That regeneration may have gone too far if the number of house price reductions is anything to go by, though.
31. Redbridge
Properties on the market to have prices reduced: 16%
The borough of Redbridge has one of the most impressive town halls in London, but it’s not impressive enough to stop residents slashing property prices in a bid to draw new buyers.
30. Newham
Properties on the market to have prices reduced: 16%
This east London borough benefitted hugely from its proximity to the Olympics, but that was four years ago and demand has cooled since then.
29. Barking and Dagenham
Properties on the market to have prices reduced: 16%
Way out east, beyond London City Airport, this borough had the dubious honour of being the “unhappiest place to work and live” according to a Company Check poll last year.
28. Enfield
Properties on the market to have prices reduced: 17%
London’s most northern borough, Enfield used to be full of small market towns before evolving into a residential commuter hotspot.
27. Croydon
Properties on the market to have prices reduced: 18%
Moving to other side of the city, way down south is the borough of Croydon, which is seeing major developments spring up as people begin to realise how quick it is to get from there to the City of London. Development hasn’t been enough to stop some prices being cut.
26. Havering
Properties on the market to have prices reduced: 18%
Another borough on the outskirts of London, the relatively rural Havering is on the north west edge of the city. Its main town is the commuter belt of Romford, which has had to tighten as property demand falls.
25. Tower Hamlets
Properties on the market to have prices reduced: 19%
Tower Hamlets extends east from the City of London, and includes Canary Wharf, which has seen luxury developers move in recent months over fears the zone 1 bubble may burst.
24. Sutton
Properties on the market to have prices reduced: 19%
Back in south London again, the rural borough of Sutton is home to some beautiful parks, rivers and churches. Not quite beautiful enough to force house sellers to drop their asking prices, unfortunately.
23. Lewisham
Properties on the market to have prices reduced: 20%
This up-and-coming borough in south London is one of the few areas young people can still afford without being miles from the centre of the city. With this level of price cuts it seems even more will be able to move there over 2016.
22. Greenwich
Properties on the market to have prices reduced: 21%
The beautiful Greenwich sits along the south east section of the Thames and is home to a glut of new developments — though perhaps too of the number of price cuts is anything to go by.
21. Brent
Properties on the market to have prices reduced: 21%
The north-west borough of Brent is home to Wembley Stadium, and with the high rate of property price cuts now could be a great time for sports fans to buy up in the area.
20. Islington
Properties on the market to have prices reduced: 21%
The perennially trendy Islington in north London is usually one of the city’s most sought-after areas, but that’s still not enough to stop 21% of its home sellers cutting prices thanks to lack of demand.
19. Hackney
Properties on the market to have prices reduced: 21%
Speaking of trendy, we come to the borough of Hackney. But perhaps its hipsters are looking for somewhere even trendier as more than a fifth of homes had their asking prices slashed.
18. Barnet
Properties on the market to have prices reduced: 21%
Another borough to touch the M25, Barnet is London’s second largest borough with a population of 331,500 residents.
17. Haringey
Properties on the market to have prices reduced: 22%
The borough of Haringey made the news recently for leading the way in rental protection against unscrupulous estate agents. Whether that will have an effect on the buying market remains to be seen, but at the moment sellers are still cutting prices like mad.
16. Bromley
Properties on the market to have prices reduced: 22%
London’s largest borough by square miles — 59 — Bromley is the gateway to the south east with some fantastic parks, but residents are still having to cut house prices to keep up with falling demand.
15. Ealing
Properties on the market to have prices reduced: 23%
In west London, Ealing is probably best known for its famous film and TV studios. With tube stops on the Central Line, it’s a popular place for commuters. Nearly a quarter of properties on the market have had their price cut, according to Propcision.
14. Southwark
Properties on the market to have prices reduced: 23%
Running along the river, Southwark is home to London Bridge and the Shard, and property is at a premium. But not such a premium sellers don’t have to cut prices to sell homes these days.
13. Hillingdon
Properties on the market to have prices reduced: 23%
London’s most western borough, Hillingdon hosts Heathrow airport, which may explain why selling a house to anyone who isn’t a frequent flyer can be rather difficult.
12. Waltham Forest
Properties on the market to have prices reduced: 23%
The birthplace of English footballer David Beckham, Waltham Forest in north east London was also one of the host boroughs of the 2012 Olympics.
11. Camden
Properties on the market to have prices reduced: 23%
About 10 years ago Camden was the most trendy area in London, but lost out since the rise of east London, which may explain the higher level of house price cuts.
10. Hounslow
Properties on the market to have prices reduced: 24%
One of the last stops on the Piccadilly Line, Hounslow has become a commuter hotspot in the last few years as new buyers jump on cheap housing. They’re even cheaper now if the price cuts are anything to go by.
9. Merton
Properties on the market to have prices reduced: 24%
Home to the most prestigious tennis club on earth — Wimbledon — the borough of Merton is a suburb with some seriously upmarket property, but its expense seems to have forced a price readjustment in recent months.
8. Harrow
Properties on the market to have prices reduced: 25%
The borough of the world famous boarding school that bears its name, Harrow could do with more of its leavers sticking around after graduating to keep property prices from falling.
7. Richmond Upon Thames
Properties on the market to have prices reduced: 26%
Selling a house at its original asking price may be tough in today’s market, but residents can always walk around the borough’s glorious Richmond Park to de-stress.
6. Lambeth
Properties on the market to have prices reduced: 27%
Occupying a large section of the south side of the Thames, Lambeth is very central with house prices playing catch up. They may have overcompensated though, as more than a quarter of sellers had to slash prices recently.
5. Westminster
Properties on the market to have prices reduced: 28%
Westminster is best known for the Houses of Parliament, but the borough also has a sizeable population — nearly 300,000. People aren’t keen to buy properties in the area at full price though, and more than a quarter of places on the market have had their price cut.
4. Wandsworth
Properties on the market to have prices reduced: 29%
Move a bit further west along the Thames and you’ll find Wandsworth — along with more apartment block developments than you can imagine. Investors may have overestimated demand though, as almost a third of sellers have cut asking prices.
3. Hammersmith & Fulham
Properties on the market to have prices reduced: 29%
Hammersmith has one of the most striking (and old) bridges in London, while the trendy Fulham is right next to Chelsea. But apparently buyers think the areas have overestimated their value — and sellers are slashing prices.
2. Kingston Upon Thames
Properties on the market to have prices reduced: 30%
Way down to the south west, Kingston is one of the fastest growing commuter towns in the Greater London area, with great access to the Thames and A-roads. But it’s felt the pinch of a slowing property market more than most, with a massive 30% of houses on the market enduring price cuts.
1. Kensington and Chelsea
Properties on the market to have prices reduced: 33%
The borough of Kensington and Chelsea may be a great place to live, but a third of properties can’t sell without price cuts — the most in all of London. While any home here will still go for a lot of money, the area has become the frontline in the market’s reaction to overinflated luxury properties, and it could be years before growth returns to its previous levels.
The post RANKED: The areas of London where the most properties have had their prices cut appeared first on Business Insider.