South and west London are experiencing the steepest drops in property prices in the British capital, according to estate agents Savills. Things may now finally stabilising – but Brexit uncertainty means prices are unlikely to rise any time soon.
In a report published Tuesday, the company said that it had seen a 4.2% drop in prices in “prime” south west London locations – including Battersea, Clapham, Wandsworth, Fulham, and Richmond – versus drops of 4% in prime central London. Outer prime London faired better, but still dropped 3.3% throughout the year. (We first saw the data via The Guardian.)
It’s the first time since 2012 that house prices in the “prime southwest” have fallen by more than “prime central” London, Savills said.
The south-west is now down 7.3% on its peak in 2014 – but has still grown 9.9% overall over the last five years.
In a statement, Savills head of residential research Lucian Cook said confusion around Brexit means imminent price growth is unlikely in London: “The prime central London market may be bottoming out, but we don’t expect a return to growth until there’s greater clarity regarding the Brexit process.
“A backdrop of political and economic uncertainty means the market will remain highly discretionary, while the high tax environment means that even international buyers remain reluctant to take advantage of the currency play. Our forecasts anticipate it will be two years before we see a bounce in values.”