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London Mansion Prices Fall 11.5% as Home `Bubble' May Have Burst

People walk past rows of luxury residential properties on Eaton Place in the Westminster district of London, U.K., on Monday, Aug. 10, 2015.
Photographer: Simon Dawson/Bloomberg
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London’s most expensive homes and apartments have slumped in value as the government’s stamp duty sales tax damps demand.

Prices of homes valued at 5 million pounds ($7.6 million) or more fell 11.5 percent on a per square foot basis in the third quarter from a year earlier, according to Richard Barber, a director at broker W.A. Ellis LLP, a unit of Jones Lang LaSalle Inc. Sales volumes across all homes in the best parts of central London dropped 14 percent in the period, the realtor said on Thursday.