Property sales in London are down significantly post-Brexit.
Luxury homes in London have become harder to sell following Britain’s decision to leave the European Union, reported Bloomberg.
In the aftermath of the vote, London has seen the number of prime properties sold plunge by 43 percent from the same period last year, while the number of homes on the market has fallen by 25 percent, revealed property data firm Lonres.
London home values were already being hurt prior to the vote, with prices falling 1.4 percent in May, or its biggest monthly drop since June 2011, based on data compiled by LSL Property Services Plc and Acadata Ltd.
Meanwhile, the Royal Institution of Chartered Surveyors’ measure of home-price changes in London fell to its lowest last month since the Global Financial Crisis.
“At the price point above 1 million pounds or 1.5 million pounds, you will find that there is more supply, and therefore from a sales perspective it is more challenging,” said David Thomas, CEO of Barratt Developments Plc.
The Lonres data showed that prime home sales fell by 18 percent in the 12 working days after the referendum over the same period prior to the vote, while the number of homes on offer declined by a third.
Romesh Navaratnarajah, Senior Editor at PropertyGuru, edited this story. To contact him about this or other stories, email romesh@propertyguru.com.sg
