London Property Bubble Bursts

May 9, 2016
Executive & Research Director @ GoldCore

The London property bubble shows renewed signs that it is beginning to burst. Property sellers in the UK have reduced their asking prices and London property prices have fallen by 7.8 percent on average and as much as 30% in some areas according to City AM today.

City AM – Data via Zoopla

“People trying to sell their homes are increasingly having to mark down their original asking price – and the amount they are dropping it by is going up.

Last month we heard that sellers in some London boroughs were having to drop prices by as much as 29 percent, but new research suggests the issue is even more wide-spread – and the amounts are getting bigger.

On average, sellers are now reducing their asking price by more than £25,000 – a jump of £4,000 of 17 percent since the start of the year, according to Zoopla.

Almost a third (29 per cent) of properties currently listed for sale on the portal have had their price reduced at least once since originally being listed – an increase of 0.43 percent since the start of 2016.

London certainly has its fair share of price cutbacks – as with the previous study, Kensington & Chelsea came out top, but this time around there is an even higher proportion of homes being marked down (33.3 percent compared with 29 percent). Homes in this borough were reduced on average by £137,421.

London as a whole had an average reduction percentage of 7.8 per cent – above the overall national average of 6.86 percent.”

The full article can be on City AM here.

Sharp falls in London and UK home prices will severely impact the heavily indebted and vulnerable UK economy.

Mark O'Byrne is executive and research director of www.GoldCore.com which he founded in 2003. GoldCore have become one of the leading gold brokers in the world and have over 4,000 clients in over 40 countries and with over $200 million in assets under management and storage.We offer mass affluent, HNW, UHNW and institutional investors including family offices, gold, silver, platinum and palladium bullion in London, Zurich, Singapore, Hong Kong, Dubai and Perth. 

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