LonRes warned London luxury homes sales down16%in January with largest prices decline since2019

LonRes، the real estate researcher in Britain، warned that sales of London luxury homes  plummeted 16% in January compared with a year earlier as higher interest rates affected demand and more supply came to the market  that prices for properties in prime areas of the UK caital، defined as 34 exclusive neighborhoods including Belgravia، Mayfair and Kensington، were down 7.1% in last month compared with a year earlier to  the largest decline in almost five years.

A bad start to the year for London’s luxury homes

LonRes، the real estate researcher in Britain، stated that it has been a bad start to the year for London’s luxury homes as sales tumbled due to higher interest rates affected demand and more supply came to the market that at the top end of the UK market، mansions are struggling to sell، while the number of homes sold for more than £5 million in January dropped % 17 from same month last year.

LonRes، the real estate researcher in Britain، revealed that prices of London luxury homes  in prime areas of the UK caital، have roughly been flat the past decade، a result of the city losing some of its competitiveness as a global finance hub post-Brexit and the pandemic-driven race for space in the suburbs.

LonRes: UK housing market has struggled as high mortgage rates and a cost-of-living crisis hurt purchasing power

LonRes، the real estate researcher in Britain، indicated that the wider UK housing market has struggled as high mortgage rates and a cost-of-living crisis hurt purchasing power، while، luxury homes have not been immune، with British buyers waiting for rate cuts and the results of a general election later this year to make a move but some of the wealthier London residents have even chosen to rent rather than buy this past year.

LonRes، the real estate researcher in Britain، explained that when UK buyers pull back، a larger proportion from overseas are filling the ranks and London luxury properties are competing with villas in southern France and penthouses in Dubai and New York، putting downward pressure on prices of London luxury homes.

The average cost of a home in the UK at £285 thousand

House price data from the British Office for National Statistics، ONS، show values falling by 1.4% in the year to December، putting the average cost of a property in the UK at £285 thousand representing a decrease of £4،000 on November’s figure، as nearly 40% of Baby Boomers، generally defined as people born between 1946 and 1964، have lived in the home they currently own for at least 20 years، while another 16% have been in their properties for 10 to 19 years، according to a report from real estate brokerage Redfin.

The annual rate of house price inflation has been declining since July 2022، when it hit 13.8%، however، December’s figure of -1.4% was up from the -2.3% recorded for the 12 months to November، according to data compiled by LonRes.

The average house price decreased by 2.1% over the 12 months to December 2023

The average house price in England decreased by 2.1% over the 12 months to December 2023، up from a decrease of 3.0% in the year to November، while the average price was £302 thousand in December 2023، £7،000 lower than a year previously، according to LonRes.

LonRes، the real estate researcher in Britain، affirmed that London’s luxury homes  average price remains the most expensive of any region at £508 thousand and the capital also has the lowest annual price inflation، with average values falling by 4.8% in the 12 months to last December. 

The North West had the highest annual percentage change in the year to December

However، this is an improvement in the -5.5% recorded in the 12 months to November، while within England، the North West had the highest annual percentage change in the year to December with an increase of 1.2%m but in Wales، the average value decreased by 2.5% over the period، up from a decrease of 2.9% in the 12 months to November as the average price was £214 thousand in December، £5،000 lower than November’s figure. 

In Scotland، however، the average price increased by 3.3% over the 12 months to December 2023، having risen by 1.1% in November and the average house price was £190 thousamd in December، £6،000 higher than 12 months previously، in addition the Northern Ireland also saw an increase by 1.4% over the year to Quarter 4 (Oct to Dec) 2023 and the ONS says Northern Ireland is the cheapest UK country in which to buy، with an average price at £178 thousand،  as the data compiled by LonRes showed.