New homes in Prime London have fallen in price by 11.5% in Q3, faster than their fall of 6.8% in the second quarter, says the latest report from Jones Lang LaSalle. This figure is twice the drop in mainstream property types in the UK as a whole, and indicates the extent of the problem for new build properties in the capital. London new homes prices have now fallen 19.1% year-on-year, a steeper fall than London itself which registered a fall of 9.4% over the same period.
‘The fallout from the global financial crisis and the impact this has had on the UK housing market, and on London’s financial sector in particular, are the main drivers behind the latest drop in London new home prices,’ says the report.
However, the main casualty across all housing markets is till a decline in activity, the study notes, which makes it difficult for vendors to gauge where prices have fallen to. A key factor is still sellers unwilling to drop their asking prices, particularly as few are forced sellers, which causes stand-offs with buyers who are determined to see price cuts.