More than a third of properties for sale in London have had asking prices slashed in a sign of an increasing slowdown in the capital’s property market. Some 35pc of homes have had their prices reduced in July, up from 29.7pc in February, according to research by online agent HouseSimple, which used data from property portal Zoopla.
Every borough of London has seen an increase in the number of price cuts, apart from Hammersmith and Fulham, while in Richmond and Kingston-upon-Thames more than 45pc of properties for sale have had values slashed.
Alex Gosling, the chief executive of HouseSimple, said: “Plenty of sellers are still hoping to market at mid-2016 prices, but it’s a different market now, post Brexit and the general election.
“Anyone committed to selling may have to accept that they need to drop their prices if they want to attract buyers. This is a time to price realistically, not optimistically, to attract buyers in a market that is stagnating, not booming.” This slowdown is having an effect on estate agencies, such as Countrywide, which will report its interim results this week. The UK’s largest estate agent, which includes brands Bairstow Eves and Hamptons, is expected to report falling profits.
Anthony Codling, an analyst at Jefferies, estimated its earnings before interest, tax, depreciation and amortisation would be £25m-30m in the last six months, compared to £37.9m in the same period last year.
But he suggested that changes to the business, such as adding online services, may help to mitigate this.