Demand for prime central London (PCL) property is at its lowest point since the start of 2015, according to online estate agent emoov.co.uk.
Its latest PCL Hotspots Index, monitoring the demand for property above £2m in London’s most prestigious locations, found that the amount of stock on the market has increased by +21.3% since the start of the year and +9.9% since the election, while demand has fallen -8% since June, now at just 11.%.
Emoov ran an election follow up index in June which found, despite reassurances by many high street estate agents, the top end of the market was still in decline. eMoov’s latest index reveals that this decline has continued, with demand dropping a further -8% since the Tory victory.
Amongst the areas worst hit are Maida Vale (-66%), Chiswick (-53%), Fitzrovia (-33%), Primrose Hill (-25%), Islington (-19%), Knightsbridge (-16%), St Johns Wood (-14%) and Belgravia (-12%), where demand has tumbled by double figures over the course of the last three months.
Chelsea (-5%), Mayfair (-5%) and Fulham (-4%) have all also seen a drop in demand.
However, Notting Hill has enjoyed an increase of +112% since June, with demand now at 26%. Nearby Holland Park (+59%) and Kensington (+17%) have enjoyed healthy increases and down the road, Marylebone has also seen demand lift by +17%.
North of Marylebone, Belsize Park has also seen demand start to creep back up, increasing by +3% in the last three months. However with average property demand across the London at 37%, demand in prime central London is substantially lower than the rest of the capital.
Russell Quirk, CEO of emoov.co.uk, said: “We, along with many others, predicted a tough time for prime central London since 2014, and it would seem this has now well and truly come to fruition. There were signs that the top end of the London market might be thawing when we ran our PCL Hotspots Index back in May, but it seems it’s not just the British weather that has turned with a cold snap.
“Although there are areas where demand has picked up, most notably in Notting Hill and Holland Park, this hasn’t been enough to turn the tide for the PCL market as a whole. One reason behind this is no doubt the increase of stock flooding the market.
“With PCL property listings having increased by more than 20% since the start of the year, it would seem the foreign London property investors have started to cash in their chips, whilst the high end estate agents might have started pawning their Rolexs.”