Luxury housing in London is becoming unaffordable, even for the rich. Sellers are forced to reduce prices
Sellers of luxury housing in London are forced to resort to discounts to support sales. Let's take a look at what factors are contributing to the in London and how this is affecting the market.
An important shift in the UK capital market has been an increase in the number of cases where sellers have reduced prices for properties worth more than £5 million. According to the LonRes report, the number of such transactions has almost doubled in the last year compared to the previous period. This indicates that sellers are willing to make concessions to attract buyers.
So millions of UK homes have fallen in price this year amid the cost of living crisis, the current mortgage lending situation, and economic uncertainty. Expensive loans have proved to be a painful blow to wealthy buyers, causing many of them to rethink their financial decisions. However, thanks to London's luxury housing market being less reliant on debt, the most expensive homes are still selling better than the cheaper ones.
According to analysts, the situation in London's luxury housing market could change in the coming months. They believe that if the economic situation improves and the cost of credit decreases, the market may begin to recover. In the case of continued volatility, the pressure on prices and the volume of transactions may continue.