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Bubble Burst? Sellers forced to slash price of family homes by up to 140,000 over fears Brexit will trigger property crash


01-07-2018

'Debt, death and divorce' are driving this part of the market, experts say

SELLERS have been forced to slash the price of family homes by up to 140,000 amid fears Brexit will trigger a property crash.

www.thesun.co.uk

Hefty property taxes are also fuelling the fall in asking prices of London properties, which have sunk an average of 142,000 - and in some cases up to 900,000.

 Data by property analysts Lonres show 47.6 per cent of London homes worth 1million to 2million cut their price
Getty - Contributor
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Data by property analysts Lonres show 47.6 per cent of London homes worth 1million to 2million cut their price

 

A third of all sellers in the UK reduced the asking price of their houses last year, and nearly half of homes for sale between 1million and 2million in London have cut their prices.

Property experts claim that sellers are being forced to make unprecedented cuts in order to secure a sale.

 

Sellers outside prime real estate in central London are being hit the hardest, experts say.

Henry Pryor, a property analyst and buying agent, told The Times:

"This section of the market is now being driven by debt, death and divorce.

Getty - Contributor
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Stamp duty on homes worth more than 1million is thought to partly fuel the fall in asking prices

"People who have lost a spouse, got an unexpected tax bill or need to cash in a legacy are the sellers."

He added: "Then there is the issue of stamp duty, which is particularly painful for buyers in this category.

"They don't have the silly money of oligarchs to afford it.

"The result is that sellers are having to cut prices very aggressively to do a deal."

Sellers of houses that fall outside the super-prime properties in Central London are having to compromise the most on house prices, particularly those in London and the South East.

Houses in this band are being forced to drop the original asking price by an average of ten per cent, with the national average price drop being 3.1 per cent.

Price cuts have also been put down to a rise in stamp duty for homes worth more than 1m in 2014 introduced by the then Chancellor George Osborne in 2014.

The measures mean a home worth 1.6million is burdened with 100,000 in taxes.

Data by property analysts Lonres show 47.6 per cent of London homes worth 1million to 2million cut their price, at an average of nearly 10 per cent.

Just five years ago, only a quarter of homes in this band dropped their price.

But in North England and Scotland, prices of prime and country homes are still rising.

Charlie Ellingworth, a buying agent at Property vision, said:

"These homes are still relatively cheap.

"A small home in London will buy you a very grand house in large parts of the country."

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