Luxury market affected by slow down
16 June 2016, Blog
As house prices across London slow down, the luxury homes market has been particularly affected. The capital’s biggest developers – Barratt Homes and Berkeley Groups are offering a discount of at least £30,000 on a £800,000 home.
There are a number of reasons behind the recent slump. The extra stamp duty that was introduced by the Government last year has de-incentivised buying a second home, there has also been a fall-off in supply from the Asian market and there is an oversupply of such homes in the market.
Some developers are looking to include more affordable homes in new developments. The Battersea Power Station Development has cut the size of some of its planned apartments to make them more affordable. Others have taken a different direction and have decided to hold back some apartments until the market improves, which agents are predicting will start recovering in 2018.
With the luxury homes market in the spotlight and Sadiq Khan pledging to crack down on second homes, it will be interesting to see how their popularity fares in the coming months.