Luxury homes in London have seen their prices slump in recent months, contrary to the wider industry which is currently experiencing a bounce back.
Deals for luxury homes in London priced at £5 million or more fell by 19% in July, according to data from LonRes.
This marks a continuing trend as sales of these high-end properties have declined by 10% in the year-to-date compared to the same period in 2023.
Nick Gregori, head of research at LonRes, said: “The volume of stock on the market continues to grow and, while this offers buyers more choice and could be positive for activity, it is likely to keep a lid on any price growth.”
Luxury homes being put on sale lifted 27% higher last month year-on-year, and there are almost two-thirds more £5 million-plus properties available than in July 2019.
Despite the market's challenges, buyers holding their wealth in US dollars may find opportunities due to the weak pound and limited price growth.
In the wider prime London market, sales rose 8.7% last month compared to a year earlier, although property values dropped 4.9%.
However, potential delays in interest rate cuts could hinder further growth in home deals this year.
Gregori added: “Agents will be hoping that the ‘wait and see’ game being played by buyers and sellers might be coming to an end… But there are barriers to a decisive recovery.”