Rich homeowners are nervous about getting burned in London
11 July 2023
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Even Londons wealthiest homebuyers are shying away from deals as a cocktail of pricier borrowing and political uncertainty spooks the citys real estate market.
Transaction volumes across prime London which includes the capitals most affluent postcodes dropped about 20% in the first half of 2023 compared to last year, according to data compiled by researcher LonRes. Deals priced at 5 million ($6.5 million) or more tumbled the most, as wealthy homebuyers wait for signals on whether the next UK government will shake up housing policy.
We are hearing anecdotal reports of buyers expressing nervousness around the political situation and expectations of a change in government, said Nick Gregori, head of research at LonRes. Combined with the economic outlook and forecasts of price falls, it is no surprise that some people are in no rush to buy this year.