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Big fall in £10m-plus home sales in London
Ruth Bloomfield18.01.10
The number of homes sold in London for more than £10 million fell by more than 40 per cent in the wake of the credit crunch.
Last year, 50 houses and apartments changed hands for eight-figure sums, down from 75 in 2008 and 86 in 2007, according to Land Registry figures.
The decline in “ultra-prime” sales reflects the state of the world economy, with many buyers, particularly Russians, facing big squeezes on their wealth, as well as a steep fall in property values since the peak of the market in 2008. Only one of the top 10 highest value property sales in London was completed last year.
However, agents said even the reduced number of sales in the highest price bracket — 10 of the 50 were for more than £20 million — showed the importance of owning property in London for the world's richest individuals.
Jonathan Hewlett, a director of Savills, said: “This sector held up right up until the demise of Lehman Brothers. Then there was a pause while it sorted itself out.” There have been signs of a recovery in the ultra-prime market — concentrated on Knightsbridge, Kensington, Mayfair, Belgravia, Holland Park and Hampstead — since last autumn.
It was reported this weekend that Hong Kong-based billionaire Joseph Lau has paid £33 million for a house in Eaton Square.
The most expensive home ever sold in London is at Palace Green, Kensington, sold for £120 million in 2008. The buyer is thought to have been Lakshmi Mittal.
Reader views (12)
If it helps I am willing to sell my house for £10 million to bump the numbers up.
- Paul, London
Lesson for Boris.Bankers will not leave the UK because their houses are now worth half what they paid for them.
- Dave, london
Ryan, the link between the housing market and the recovery is tenuous at best. The housing market is bouncing back through a combination of lack of supply (no-one can afford to move), overseas buyers (low pound), lower interest rates and the government purposely creating some asset bubbles again through it's stimulus programme. There are no green shoots with foundation yet unfortunately.
- Mattk, Ware
Properties go up with inflation as they did in the 70 and 80s with high inflation. There is no inflation at the moment, so any increases will fuel another bubble. Prices are still well below the 2007 levels, but still way too high and with 3-4% rental yields it really doesnt make economic sense for most people to buy.
- Mike, London
Am I the only one who's read this article correctly? It's all about ASKING price, NOT selling price. There is absolutely no evidence that this ploy is going to work, and certainly no evidence that the economy's in recovery!
- Marianne, SW France/London
My properties in Ealing going up in value? NICE!
- Coys Switz, switzerland
Oh joy! - Now those who couldn’t afford to buy a HOME last year can afford it even less this year.
And the banks are getting back into the swing of bling TV again, has anyone noticed - personal financial adviser to come to your house and check how you’re pregnancy’s doing, and all that - a pound for the kiddies special tax free account!
Won’t be long before Howard comes back singing and dancing on our screens, offering 125 percent "together" mortgages so you can afford that luxury holiday cuddling Orang Utans - `cause you’re worth it.
“And don`t worry if you can`t make you`re monthly payments, folks, our mathmatical celebrities will convince you to consolidate you`re loan”…. (house WILL be repossessed when you can`t afford that either!).
The New Year sales figures for imported fashtrash techno and bling items (flexible friend - that will do nicely Madame) prove that the feckless still spend spend spend and the lenders will lend, lend, lend.
Then interest rates, core inflation, taxes and unemployment will go up,up,up, the prudent and savings values down down down.
And we would have learned nothing.
- Darius, London
More boom then bust!
- Andy, London
So what will happen when taxes and interest rates go up?
- Alex, London
Great news.................NOT. So house prices go up to £500,000 for a rundown house/flat in Leytonstone ? Are we the most overpriced country for property in the world. Its a house somewhere to LIVE.
- Grim Reaper, Hell
Dave- "I don't understand why this is good news.It just means a lifetime in debt buying what you can ill afford."
This is very good news especially for all those buyers who spent years saving, finally managing to buy their first property only for the market to collapse around them. Being in negative equity is not where one wants to be, especially with your largest asset. So any growth and recovery in the property market will be a huge relief.
This recovery is also a clear sign that the country is starting to climb out of the severe recession from 2008. Do you really want the British economy to remain stagnant with no real growth? The housing market is a barometer for the economy. Perhaps if you owned a property you may appreaciate this fact!
- Ryan, Chiswick
I don't understand why this is good news.It just means a lifetime in debt buying what you can ill afford.
- Dave, London
