Value of posh pads in London’s richest postcodes falls by £50k
The value of luxury flats in London’s poshest postcodes has fallen by 6.1 per cent in the last year as the capital’s mega rich put off buying homes amid the cost of living crisis.
According to a new report by Investec Wealth & Investment, shared with City A.M., in the last year the average price of London properties worth over £1m fell by 2.5 per cent or nearly £50k.
In regions such as Belgravia and Chelsea, the cost of a maisonette or flat fell by 6.1 per cent. The average price this year is £1.95m, down from last year’s average of over £2m.
However, sellers across all tax brackets in the capital have also been forced to cut the prices of their homes in order to entice buyers in a tough market.
The price paid for million-pound detached houses has also fallen by an average of £103k – from £2.16m to £2.06m.
However, the price of high end semi-detached houses has risen in value over the same period last year by 7.8 per cent to £1.97m.
Kensington & Chelsea has had the highest average price for million pound property sales of any London borough with £3.25m, followed by the City of Westminster, £2.85m.
Ade Babatunde, financial planning director at Investec Wealth & Investment, said: “Despite the average price of £1 million-plus properties in London falling this year, our analysis shows that many households in Central London could be exposed to at least £400k in inheritance tax.
“For households with net assets of more than £2 million, their inheritance tax allowances available under the current ruling could condense, increasing the amount of tax their estate could be subject to.”
He added: “Albeit property in general is deemed to lack liquidity, there are still a number of opportunities for families to take advantage of to reduce the potential impact of IHT.”