Demand for London’s £1m+ property market has crashed by 10%, according to estate agent eMoov.
The company says Brexit has caused property demand in prestigious locations to fall ten points on their prime central London property index.
The index suggests London’s £1m+ property market is feeling the strain of the decision to leave the EU, exacerbated by a cooling in demand as a result of changes that took place to stamp duty for buy-to-let and second homes purchases in April.
According to the index, the five areas of prime central London where demand is at its lowest are Mayfair (3%), St Johns Wood (4%), Knightsbridge (4%), Belgravia (4%) and Fitzrovia (5%).
In addition, a notable 75% of London’s most prestigious locations have seen demand remain static or drop since Q2. Places that have seen a positive uplift in demand for property over the last three months include Holland Park, Marylebone, Notting Hill, and Primrose Hill.
Notting Hill is fourth hottest where demand levels are concerned, currently at 14%. With Belsize Park enjoying the highest demand across the PCL landscape (18%), followed by Islington (17%), Chiswick (15%) and Holland Park (13%) completing the top five.
Founder and CEO of eMoov.co.uk, Russell Quirk, said: “Yet more bad news for prime central London homeowners, with the Brexit vote seemingly putting the boot in while they’re down after the market took a bit of a kicking due to April’s stamp duty changes.
“This was always likely to happen as these areas of London rely heavily on high-end foreign investment and second home visitors to survive. Whilst the rest of the UK market seems to be ticking along with little impact as of yet, the immediate weakening of the sterling and negative response from the rest of the EU seems to have had an instantaneous knock-on effect on the prime central London market.”