Living
London’s Prime Homes Suffer Sharpest Price Drop in Five Years
The market in exclusive neighborhoods has been hit by higher interest rates and increased supply.
Pastel-coloured residential terraced buildings in the Kensington and Chelsea district of London, UK, on Monday, Nov. 14, 2022.
Photographer: Jason Alden/BloombergThis article is for subscribers only.
It’s been a bad start to the year for London’s luxury homes.
Prices for properties in prime areas of London, defined as 34 exclusive neighborhoods including Belgravia, Mayfair and Kensington, were down 7.1% in January compared with a year earlier. That’s the largest decline in almost five years, according to data compiled by researcher LonRes. Sales, meanwhile, slipped 16% as higher interest rates affected demand and more supply came to the market.