Demand is starting to return to the prime London market, with discounts narrowing on sale prices according to the latest estate agent data.
At the higher end of the London market properties are now been discounted by an average of 3.6% before securing a buyer. Lettings and estate agent Benham and Reeves points out that is less than the average 4.5 per cent discount being applied a year ago.
It says that while prime properties are still being discounted across London, in 14 out of 20 of the areas analysed, the size of these discounts has reduced year-on-year.
The data shows that these discounts have narrowed the most for properties being sold in Bayswater, Maida Vale, Hammersmith and Brook Green, Chiswick and North Kensington. This is closely followed by properties in Richmond, Kew and Sheen, Battersea, Clapham and Wandsworth. In these areas the gap between asking prices and sale prices has closed by more than 40% over this period.
The biggest discounts currently are on prime properties in Mayfair and St. James’s, where the average homebuyer is securing a 7.9% discount. Other areas where properties are still being sold at a significant discount on asking price include Marylebone and Fitzrovia, Bloomsbury and Soho.
Benham and Reeves figures show that the average discount, of 3.6 per cent ,equates to a reduction of £47 per square foot, or £24,508 saving on the average prime London flat. This compares to a discount of £56 per square foot – or a £29,418 saving last year.
Benham and Reeves director Marc von Grundherr, says: “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.”
