London's high-end homes are in crisis.
House prices in prime central London have been falling since 2014, when former chancellor George Osborne slapped higher rates of stamp duty on homes worth over £1m. This year, he introduced a further three per cent hike for people buying second homes.
The changes were intended to raise money for the Treasury and help first-time buyers get on the housing ladder. But, without access to truly affordable housing, most young people still face the prospect of renting for several years until they can buy a home.
London's high-end homes have been the hardest hit by the policy, as buyers refuse to pay the government's surcharge (see video). House prices in prime central London are expected to fall by six per cent this year, with prices in Chelsea having already dropped by 13 per cent year-on-year.
Data from Propcision has pin-pointed the houses that are proving most difficult to sell; some have been reduced in price by as much as 46 per cent.
Michelle Ricci, co-founder of Propcision, said some of these properties had ambitious pricing to begin with. In addition, her research showed that since June, the price cuts became more concentrated in central London and other affected areas, as the Brexit vote compounded pre-existing problems in the market.
Ennismore Gardens, Knightsbridge
This eight bedroom terrace house in Knightsbridge was first on sale for £22m, but is now advertised for £14.5m – a 34 per cent haircut.
Palace Court, W2
This two bedroom flat has had its price slashed by 36 per cent since it was first on the market, coming down from £2.5m to £1.6m.
Devonshire Place Mews, Marylebone, W1G
This mews house first came on the market for £4.5m, but has since had a 36 per cent haircut and now has an asking price of £2.9m.
Cadogan Gardens, Sloane Square
The vendor for this one bed bachelor pad in Chelsea was originally trying to fetch £2.2m, but has reduced the price by 32 per cent to £1.5m.
Chelsea Island, Harbour Avenue
This penthouse in south west London is served by two elevators and has a private terrace. But, it hasn't managed to sell at its original asking price of close to £12m, and is now on for £6.5m, a cut of 46 per cent.
Soho Square, Soho
This new build penthouse in the centre of London has been hit by a price reduction of 34 per cent, down from £5.95m to £3.95m.
Kensington Park Gardens
This classic Notting Hill property – which comes with access to Ladbroke Square's communal gardens – has been reduced by 40 per cent. Its original asking price was £2.5m, and now it's advertised for £1.5m.
This mansion apartment – with three double bedrooms – in Bloomsbury is now on the market for £2m, but has had its price slashed from £3.5m, a 43 per cent cut.
Bennet House, 54 St. James's Street
Just down from Fortnum & Mason, The Wolsey and the Ritz, this redeveloped flat could not be in a more prized location. But, the three bedroom apartment couldn't sell for £8m, and has now been reduced by 34 per cent to £5.3m.