The streets of London were once paved with gold, according to legend, but that’s not the case any longer.
House price research has revealed the values of the capital’s luxury homes are falling, according to property portal Zoopla.
Around 36% of London property listings have been reduced by an average 7.24%, the portal’s analysis discloses.
The wealthy south west London suburb of Richmond upon Thames, with streets of well-to-do homes and leafy parks has seen 45% of property asking prices slashed.
Wealthy streets suffered most
But the wealthy borough of Kensington and Chelsea has suffered the most.
Home to Britain’s most expensive streets, some properties have seen almost 8% shaved off their values, and with price tags nudging £35 million that’s a massive £3 million saving.
Kensington Palace Gardens, where Russian oligarch Roman Abramovich, heiress Tamara Ecclestone and the Sultan of Brunei are among the residents.
Two years ago, the luxury mansions were worth more than £42 million each. Today, they have dropped £7 million to £35 million, shedding a sixth of their value.
In the same borough, residents of The Boltons have seen £13 million wiped off their property prices, with a fall from £33 million to £20 million. Pop star Madonna has owned a home there.
Outlook not so bad outside London
Zoopla spokesman Lawrence Hall said: “There has been an increase in the number of reduced properties on the market since earlier this year, which is good news for first time buyers trying to get onto the property ladder. Those looking to scout out a bargain should consider looking in County Durham, home to Stockton-on-Tees and Bishop Auckland, some of the biggest discounters.”
The outlook is not nearly so bad for most homeowners.
The average discount nationwide for the three months to the end of September is £24,823, slightly down on the previous quarter, when the figure was £24,989.
Outside of London, the places with the highest number of discounted homes is Southsea, near Portsmouth, Hampshire.
The seaside town has seen 46% of homeowners shave their asking prices by an average 5.3%, which amounts to 313,578.
Next on the list is the South Yorkshire town of Doncaster, with an average discount of £10,604. The town has 45% of homes for sale discounted by an average 7.41%.