Luxury London property sees further decline

The data, collected by high-end estate agent Strutt and Parker, showed that the overall value of properties transacted was down 21.1 percent in the third quarter of 2014, compared with the same period in 2013.

In the same timeframe, the value of properties under £2 million ($3.23 million) saw a decrease of 20.8 percent and properties in the £2 to £5 million price bracket saw prices fall 27.1 percent.

Homes worth over £5 million performed slightly better but still saw a decline of 15.2 percent.

As the U.K. heads into an election year in 2015, the uncertainty over the country’s political future could deter buyers further. There is already a controversial proposal from the opposition Labour party for a “mansion tax” on all properties worth £2 million. The details of the proposal are still being worked out but shadow chancellor Ed Balls has said the levy would begin at £3,000 a year.

A similar pattern emerged in terms of volume sales, which were down 26.8 percent overall, with all price bands seeing a reduction in the number of transactions, the estate agent noted Tuesday.

Lulu Egerton, Partner at Strutt Parker in Chelsea – one of the areas defined as “prime central London” (PCL) along with Knightsbridge, Kensington and Belgravia among others – said “there is no doubt that PCL property is in the midst of a price correction.”

“After a spectacular year in 2013, asking prices had become inflated and they are now in a period of correction where prices are being adjusted down by around 5 percent to 10 percent as buyers become far more price sensitive.”

Read more: UK house prices show further signs of cooling

Foreign buyers previously drawn to London property as a perceived “safe-haven” asset have retreated from the market, Knight Frank estate agents said in a report this summer. The high-end agent said that international buyers in 2014 have accounted for under half (47 percent) of the super-prime market so far this year, down from 64 percent in 2013 and 73 percent in 2012.

The data follows a period of sharp house price increases in the U.K — particularly in London and the south-east. There are signs that the overall market is starting to cool down, however.

Read more: Appeal of London property wanes for foreign buyers

The Centre for Economics and Business Research forecast in a report earlier this month that U.K. house prices would grow by 7.8 percent this year but fall by 0.8 percent in 2015. In London, the CEBR predicted house prices would decline by 2.9 percent in 2015, the first decline since 2009.

The slowdown could have an impact on the U.K. economy as a whole, which is estimated by the IMF to grow 3.2 percent in 2014. Its recovery had been partly attributed to the boom in the property market so a slowdown could affect growth.

The slowdown should be kept in perspective, however, according to the head of Research at Strutt Parker. “Whilst total values transacted in central London are markedly down on this time last year, we must have a sense of perspective. It is really not surprising that prices are stabilizing after the dramatic price increases we saw over the past 12 months,” Stephanie McMahon said in the report.

She added a decline in prices had been seen before in the run up to a general election. “It is a recognizable pattern and we do not believe it spells doom for the property market in the long term.”

Clarification: This story has been updated since it was first published to show that the overall transaction value for luxury properties has fallen.

– By CNBC’s Holly Ellyatt, follow her on Twitter
@HollyEllyatt

Article source: http://www.cnbc.com/id/102109158

Posted in Properties a News |

Fencing Certain Tornado-Damaged Properties in Washington

WASHINGTON – Nearly 40 Washington homes destroyed in last November’s tornadoes are still nothing more than a hole in the ground. The Public Services Committee says those lots should put up chain link fences around the property.  The committee made … Continue reading

Posted in Properties a News |

Properties searched after 7 found dead

GARY, Indiana (CNN) – Seven women killed. At least. To make sure the toll isn’t higher, Indiana authorities spent Tuesday canvassing abandoned properties in Gary, Indiana. This comes after authorities say Darren Deon Vann — the man who, according to … Continue reading

Posted in Properties a News |

Medical Properties Trust pours $1 billion into new properties

Medical Properties Trust has signed a deal to acquire and lease back substantially all of the real estate assets of privately-held MEDIAN Kliniken Group, the largest private provider of post-acute and acute rehabilitation services in Germany. The aggregate purchase price … Continue reading

Posted in Properties a News |

Medical Properties Trust pours $1 billion into new properties

Medical Properties Trust has signed a deal to acquire and lease back substantially all of the real estate assets of privately-held MEDIAN Kliniken Group, the largest private provider of post-acute and acute rehabilitation services in Germany. The aggregate purchase price … Continue reading

Posted in Properties a News |

Two properties sold from D&D program

“I think this is the hope for how the program works. We got rid of a blighted eyesore property and now someone who’s interested in taking care of and maintaining the property who has made a purchase offer and I … Continue reading

Posted in Properties a News |

BRIEF-Adler Real Estate successfully disposes of leftover properties

Thomson Reuters is the world’s largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and … Continue reading

Posted in Properties a News |

Properties searched after 7 found dead

Seven women killed. Police believe Darren Deon Vann may be responsible for the deaths of at least seven women. Since Vann is a registered sex offender, police are aware of him, but nothing seemed unusual when police last checked up … Continue reading

Posted in Properties a News |

Retired homeowners lead the rush to release equity

People released £375 million from their properties between July and September, making it the largest amount in any one quarter since records began in 2002. The quarterly figures from the Equity Release Council pushed the total for the first nine … Continue reading

Posted in Properties a News |

4 Properties Slated For Demolition

Posted: Tuesday, October 21, 2014 10:30 am | Updated: 10:42 am, Tue Oct 21, 2014. 4 Properties Slated For Demolition Sarah R. Gregory GreenevilleSun.com | 0 comments Four properties that members of Greeneville’s Standard Review Board have already determined should be … Continue reading

Posted in Properties a News |