London House Prices Drop by £40,000 Following Brexit

London house prices have dropped by around £40,000 following Friday’s EU referendum result, according to the latest analysis from estate agent Stirling Ackroyd.

Eurozone buyers can now snap up London homes for up to €50,900 cheaper, reports the agent.

Friday’s depreciation in sterling means that the average property in the capital now costs just €579,200, compared to a record high of €630,100 in November 2015. This change means that homes in London have become €50,900 cheaper for euro buyers, equivalent to £40,900.

The €50,900 reduction in prices amounts to an average 8% discount in the London property market.

The Managing Director of Stirling Ackroyd, Andrew Bridges, comments: “European buyers can now snap up real bargains across London. Overnight, London has become a more affordable global property hotspot – particularly for those paying in euros.”

In sterling terms, London house prices are still historically high, but this masks some underlying cooling in the high end of the market.

The agent found that the top 25% of the London property market experienced an annual decline in prices of 2.4% in the last quarter of 2015 – contrasting to the 8.2% rate of growth recorded in the majority of neighbourhoods.

The most luxurious areas of central London are expected to be hit particularly hard by the referendum result, with Kensington High Street and Notting Hill experiencing sharp falls in house prices during the last quarter of 2015, of 11.8% and 10% respectively.

However, investment firm London Central Portfolio claims that the market will prove resilient to the Brexit.

Bridges concludes: “After the shock of the referendum, calm will return to the market and people will see the bright lights of London are undimmed.

“London’s reputation as a valuable property investment hotspot remains undiminished and the capital will continue to attract an abundance of potential buyers. London will retain its global capital city status.”