Buying agent and property pundit Henry Pryor has predicted “significant” redundancies and branch closures in the London market. He said many agents are “on their knees”.
Separately, in a gloomy report, a central London agent has said that the Government will have to address the woes of the housing market in the capital.
Peter Wetherell, of Mayfair agent Wetherell, said that the luxury market is currently dogged by “hesitation and anxiety”.
He said asking prices in London are already down by over 3% this year, and are 15% lower than three years ago.
Asking prices are being cut as Stamp Duty increases take their toll. He cited the case of a property previously on at over £1m which has had its asking price slashed by 50%.
This is a property in South Kensington first advertised in May at over £1.2m and now on the market at £685,000 with Foxtons.
Wetherell said that transactions are down and the number of homes taken off the market because they have failed to sell has grown.
However, he said the economic uncertainty is currently creating “rare opportunities” for buyers, but added that they needed encouragement.
Wetherell said: “Uncertainty and loss of market share due to Brexit will place the Government under huge pressure to cut corporation tax, cut income tax and slash Stamp Duty.
“All these measures will be needed to keep London competitive so bold investors could now reap future rewards.”
Yesterday, Pryor tweeted: “We’re going to see some significant redundancies and some well known brands closing down in London at this rate.”
Pryor told EYE: “Many agents I speak to are on their knees.
“There is a market but it’s not big enough to support the number of mouths that need to be fed. It’s pretty bleak for many.”