Up to 50% off million-pound homes! Buyers can bag a bargain as luxury property market is hit by stamp duty hikes and Brexit concerns
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- Luxury homes are being hit by stamp duty hikes and concerns about Brexit
- House prices in London have fallen for the first time in eight years, according to Nationwide Building Society
- Experts suggest the falls presented an opportunity for buyers to find a bargain
- Discounts of up to 50% available on exclusive homes previously advertised for sale for more than £1million
Hundreds of thousands of pounds are being knocked off the asking prices of properties valued around the million pound mark as the top end of the housing market cools, it has been revealed.
The trend is particularly pronounced in London, where values tend to be higher and £1million often doesn't extend to much more than a two or three-bedroom flat in some areas. Discounts of up to 50 per cent can be found, according to estate agents.
Experts claim the decreases in the capital are having a so-called 'ripple effect' on the traditional commuter belt of the South East, where values are also slowing.
The latest house price data from Nationwide Building Society revealed that house prices in London have fallen for the first time in eight years.
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It said values dropped 0.6 per cent during the past year to £471,761, compared to an average value of £210,116 for the country as a whole.
Nationwide's chief economist Robert Gardner explained how house prices across the UK have converged in recent quarters, saying: 'Annual growth rates in the south of England have moderated towards those prevailing in the rest of the country. London has seen a particularly marked slowdown.'
The number of homes for sale above £1million that have dropped their asking prices has nearly doubled this year, according to estate agents Savills.
It also blamed the shift on concerns from buyers about the effect Brexit negotiations could have on the economy and the impact of the overhaul of stamp duty.
The changes to the tax in 2014 means those with homes costing more than £937,000 pay more in stamp duty than under the previous system.
Areas in the North, where values tend to be lower, have been less affected. Brian Murphy, of Mortgage Advice Bureau, said: 'Regionally, house price growth is levelling, with London prices seeing their first decrease annually in eight years, which has had a 'ripple effect' on prices in the traditional commuter belt of the South East, where we can also see growth becoming muted.
'However other areas of the country, such as the South West, East Anglia and particularly the East Midlands are seeing prices and demand continue on a strong market trajectory, signally continued consumer confidence.'
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Mr Murphy predicted a more positive outlook amid demand continuing to outstrip supply.
'With growth in most of the UK still in positive territory, a continued lack of stock in many areas and a lot of motivated buyers still looking for property to purchase, the market is in good shape overall and, all things taken into account, may well continue on its current course over the remaining months of the year,' he said.
Henry Pryor, who acts to find and negotiate deals for buyers, said: 'There's no cost when setting a guide price, you can ask whatever you want but unlike the market of 18 months ago this is now very definitely a buyers' market.
'I'm seeing deals in London agreed not just 10 or 15 per cent below the original asking price but 25 to 30 per cent - and not just in the centre of town where the prices were highest.
'I can't recall a market full of such opportunities and I expect this winter that many buyers will lay down the foundations of their future property fortunes,' he concluded.