According to research from bespoke mortgage solution provider, Henry Dannell, on average, prime London homebuyers are securing a 1% discount on their purchase and while this may sound marginal, it equates to over £42,000 on the average sale.
The firm analysed current market data across prime London properties in 20 areas of the high-end market and how this compares to the original asking price at which they were originally listed and found that in some areas, the discount is much higher and nowhere more so than in Mayfair and St James’s.
Properties entering the market are doing so at an average asking price of almost £2m, but buyers are securing a -7.9% discount - a saving of £155,418.
Across Fitzrovia, Bloomsbury and Soho, buyers are securing an average discount of -5.6% equating to a saving of £71,432 on the original asking price.
In Marylebone, Knightsbridge and Belgravia they’re securing a discount of over £70,000, with South Kensington also seeing some of the biggest prime property price reductions in the current market (£69,470).
Geoff Garrett, Director of Henry Dannell, commented: “The prime London market has struggled in recent years and while we’ve certainly seen glimpses of a revival at times over the last 12 months, this has yet to fully materialise.
"Transaction volumes remain fairly muted and although property values have continued to creep up, those motivated to sell are dropping their price expectations in order to secure a buyer.
"A one to five per cent reduction on the initial asking price of a property is pretty normal in any segment of the market, but in prime London, this equates to quite a considerable sum of money.
"With travel restrictions easing and foreign interest now returning, we expect the prime London market to perform far better in 2022, and while high-end homebuyers may be securing a bargain at present, this is unlikely to be the case later on in the year.”
