Residential property in central London locations has fallen in value by an average of 10%, according to estate agents Astons, with deals in Mayfair crashing up to 40%.
The news reflects evaporation of interest in London mansions among international buyers due to Covid-19. New quarantine restrictions imposed by the UK on foreign visitors could further choke off demand.
Astons has seen deals in Mayfair and St James’s struck at £2.9 million against a previous £4.9 million.
Property group Rightmove confirms prices for houses in Mayfair have fallen 40% in a year, after hitting a peak of £5.7 million in 2018. Other agents are less gloomy but concede turnover has fallen.
Astons managing director Arthur Sarkisian said: “Restrictions on travel have prevented foreign investment to a certain extent while those looking to buy for themselves have continued to opt for more peripheral locations.”
Kensington has seen a fall of 18%, while other central London districts have suffered smaller declines. Some districts, such as Chelsea, have seen price increases.
The dispersion in prices across London reflects an exceptionally thin market, where one or two deals can hugely distort the averages. It has also become harder to lease property to third parties, leading to a sharp fall in rents.
Astons says that overall London house prices including cheaper properties outside the centre have risen in value by an average of 3%. This period includes a stamp duty holiday for smaller deals due to come to an end in March.