London’s luxury housing market has started to slow after several years of soaring price growth, estate agents warn.
Savills, one of Britain’s biggest estate agencies dealing in prime property, said in a trading statement on Monday that it had seen “some cooling” in the top end of the central London market.
The note of caution came a week after a London flat sold for £140 million, making it the most expensive in the capital, and Grosvenor Group warned this month of a “bubble” in London housing. The Duke of Westminster’s property company said it was pulling back from developing new homes as “the prospect of a correction is becoming more likely”.
Savills estimated that prime central London house prices grew 8.9 per cent in the year to March 2014 but will rise only 3-4 per cent this year.
“It’s a cooling in the rate of increase,” said Jeremy Helsby, chief executive. “The market has had a very strong run but we believe this year it will come off.”
Mr Helsby stressed that London continued to be popular with the foreign buyers who have fuelled the price growth. “We’re still seeing increasing interest from Russian buyers, for example. As long as there is instability somewhere in the world, the London market will benefit,” he said.