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New build sales in prime London sink but prices 44% higher than existing homes – analysis

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  • 24/09/2018
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New build sales in prime London sink but prices 44% higher than existing homes – analysis
New build house prices in the wealthiest parts of London are 44% more expensive than existing homes – even though transactions in the sector have plunged by 16% over the past year, analysis has shown.

 

Buyers in so-called prime central London face a typical £1.08m premium when buying a new-build home with an average £2.86m price-tag, compared to an average £1.78m for existing homes.

However, transactions in this area of the market have fallen by a whopping 16% since 2017, according to property adviser London Central Portfolio (LCP).

In prime central London, excluding new-build, transactions have tumbled by 42% over the past four years and are down around 10% over the past year.

Across Greater London, excluding new build and prime central London, transactions have fallen by 6%, but prices are 2.6% higher year-on-year at a typical £594,123, the data showed.

 

Reduce tax revenues

Naomi Heaton, chief executive of LCP, said the slide in transactions is “putting further pressure on sellers, estate agents and home builders alike”.

She added: “It is also likely to reduce tax revenues for the Treasury.

“There has been no action or initiative from the government that gives any indication that this trend will change.

“The housing market appears to be the least of the government’s worries with a potential no-deal Brexit on the horizon.

“Whilst uncertainty continues, it is bound to stifle homeowner and investor interest.”

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