Prime residential property in the Home Counties has been seeing “significant price reductions” of up to 10% since June last year.
According to research from Investec, which collated data from thousands of UK addresses between June and December in the Home Counties and London, West Sussex saw the largest average reduction at 12.6%, followed by Essex at 11.2% and Kent at 10.6%.
London was more resilient, with the average price reduction coming to 8.6% as a whole, falling to 4.8% in some areas in North West London, but coming to 12% and 11.5% in some areas of West London.
The report noted that in the South East, prices in Berkshire were the most robust, with an average reduction of 8.5%, but it was the slowest market, with £1m-plus properties taking an average of 111 days to sell. This was followed by West Sussex at 100 days and Kent at 99 days.
Prime properties sold fastest in East Sussex, where it only took 74 days on average.
London properties over £1m had the highest average sales price at £1.86m, followed by Buckinghamshire at £1.65m and Oxfordshire at £1.62m. The lowest average was East Sussex with £1.34m.
Oxfordshire had the lowest new supply levels, with 719 new listings of properties over £1m. Surrey was on the flip side with 2,928 new listings.
Anecdotally, Investec said that it had seen high levels of interest in the Home Counties, especially within commuting distance of London, and the recent price discounts could “create opportunities for potential buyers”.
‘Greater client demand’ for Home Counties
Carlos Mendes, private banker at Investec, said: “The Home Counties are often referred to as a collective, but our research shows that there is a significant variation in the availability and price of prime property in these areas.
“The gradual return to office-based working has brought the commute time firmly back into focus, so we’ve seen greater client demand for the established commuter towns on the outskirts of London. Proximity to top-performing schools also remains a key priority, as does access to good local restaurants and amenities.”
He continued: “In the current interest rate environment, it is perhaps unsurprising to see the larger price reductions occurring further afield, in locations such as West Sussex, where second homes are more prevalent.
“Every property purchase is unique, and every person’s financial situation is unique. It’s therefore important that high-net-worth individuals work with lenders who understand their ideal home and location so they can access a mortgage that meets their needs, in a timeframe that allows them to seize opportunities.”
