Pursuits
No Respite in Sight for London’s Luxury-Homes Market in 2017
- Prime central homes sales dropped about 24% last year
- Sellers had to accept price cuts of 10% to secure deals
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If 2016 was a tough year for London’s luxury property market, 2017 may not provide any respite.
Values for prime properties in the U.K. capital were pummeled this year as higher sales taxes and uncertainty surrounding the country’s exit from the European Union forced sellers to accept an average discount of 10 percent in order to achieve sales, according to data compiled by researcher LonRes. That compares with 4 percent in 2013. The market will remain subdued next year as relief on mortgage interest is reduced, capital-gains tax increases and new rules regarding inheritance tax deter buyers.