London lettings and estate agent, Benham and Reeves, claim that although prime London properties are subject to discounts, this discount is starting to decrease.
The figures reveal that before securing a buyer, prime London properties are receiving a discount of around -3.6%. This is the equivalent of £24,508 for flats on average.
Benham and Reeves forecast that the gap between these discounts will start to close. Compared to 12 months ago, discounts of £29,418 on the average flat were accepted.
London locations with the largest discounts
According to the research, buyers in Mayfair and St James’s can expect to receive the largest property discounts. Reductions up to 7.9%, the equivalent of £94,062, are accepted in these locations.
Savings up to £42,763 can be made on the average prime flat in Marylebone and Fitzrovia, Bloomsbury, and Soho.
Where discount figures begin to drop
In the last year, around 14 of the 20 prime London areas have seen the size of this discount reduce. This could be the result of demand returning to the capital after lockdown restrictions were lifted.
12 months ago, the average discount for properties in Bayswater and Maida Vale was £36,081. However, this discount currently sits at £19,638.
Discounts for properties in Hammersmith and Brook Green, Chiswick, and North Kensington have also reduced by -45.5% in the last year. Richmond, Kew and Sheen have reduced by -41.9% and Battersea, Clapham and Wandsworth reduced by -40.6%.
In Kings Cross and Islington, discounts of £1,685 on the average flat a year ago were £1,685, Since then these discounts have risen to a +188% increase of £4,853.
Hampstead properties saw an increase of +47.5%, Midtown, City and City Fringe (+47.5%), Marylebone (+25.1%), South Kensington (+2.4%), and Fulham and Earls Court (0.6%).
Director of Benham and Reeves, Marc von Grundherr, concludes: “The prime London market is yet to fully find its feet following a rather sustained period of muted house price performance, spurred initially by the political uncertainty of Brexit, followed by the impact of the pandemic and restrictions to foreign travel.”
“However, it now certainly seems as though the tide is starting to turn and we’ve seen a growing revival of buyer interest across London’s top tier property market.”
“So while sellers are still offering discounts in order to secure a buyer, the extent at which they are having to lower their expectations is reducing and this is a trend that is likely to continue as the year goes on.”