It means some affluent people are facing hundreds of thousands, if not millions, of pounds in losses to the value of their homes, with properties selling at an average 10% discount to their asking price, Coutts found.<\/p>\n
Prices in the highest end of London\u2019s property market are now 14% below their peak in 2014, having been hit hard by Brexit, the Covid pandemic, higher property taxes and a surge in borrowing costs. Buying and selling agents in the capital have also reported a slowdown in interest from foreign-born buyers after the abolition of the non-dom tax regime.<\/a><\/p>\n Exclusive areas such as Knightsbridge and Belgravia, and South Kensington have been hit the hardest, Coutts said, with prices 30.8% and 26.9% below their peaks respectively.<\/p>\n One of west London\u2019s mews, where properties have long been sought-after. Photograph: Sunpix Travel\/Alamy<\/p>\n Alex Webster, head of lending at the bank, said buyers and sellers at the top end of the market were taking a more cautious approach, even before the chancellor, John Healey\u2019s, first budget this week.<\/p>\n Sellers will now be watching to see if the budget \u201cencourages some of that delayed activity to return\u201d, she said. \u201cBut financing conditions and the wider economic environment will continue to influence the market.\u201d<\/p>\n There has been no change in the Bank of England base rate since last December but volatility in the bond market has driven up the swap rates that influence the pricing of fixed-rate mortgages.<\/p>\n London\u2019s Belgravia. Photograph: Ian West\/PA<\/p>\n While the Bank of England has kept its key interest rate on hold at 3.75%, expectations are growing that next week its monetary policy committee will vote to increase the rate for the first time in three years to 4%.<\/p>\n
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