Can investors really believe the claim that some London house prices have now been cut by as much as 60%?

The answer is perhaps, according to Jefferies London, a property brokerage in the capital. But the big reductions are in areas with big asking prices.

It has analysed sold price records from the Land Registry, looking at the market values achieved since the start of the year across six of London’s most sought after prime locations and how this current market performance compares to the same period last year.

The research shows that all of the six areas have seen significant reductions in sold prices. No where more so than Mayfair, where the average sold price of homes sold so far this year sits at just £1.5m. Whilst still a significant price tag, that’s a reduction of 60% when compared to the average sold price seen during the same period last year.

Across Chelsea, the average sold price seen so far this year currently sits 47% down year on year, whilst Belgravia (-44%) and Westminster (-28%) have also seen some of the most notable corrections.

Kensington (-21%) and Hampstead (-23%) have been impacted to a lesser extent, although both areas have still seen sold prices fall by around a fifth.

Damien Jefferies, the firm’s founder, says: “The prime London market is world renowned and so the current slide in sold prices is very much a transactional issue and certainly not one that reflects an actual drop in values.

“In a market that operates very much on a quality over quantity basis, a single transaction can dramatically change the picture. For example, as recently as 2023 we saw notable sales to the tune of £21.5m in Kensington Palace Gardens, £20.4m in Queen Anne’s Gate and £12m on Park Lane all of which would have a significant impact on overall market values.

“As it stands, we’re simply not seeing these big ticket purchases in the current market and, whilst properties are transacting, they are doing so at the lower tiers of the market.

“That’s not to say that we aren’t seeing strong interest from prime London homebuyers and, as the market continues to settle over the remainder of the year, we expect this interest to start to convert, cultivating sold price values in the process.”