Luxury London property market wanes

There's a problem in London’s high-end property market – people just aren’t as keen on luxury property as they were a year ago.

The Malaysian consortium behind the redevelopment of Battersea Power Station had planned to build more than 3,800 apartments on the site. But after selling 1,460 flats, weak demand for luxury London property has forced it to consider changing one million sq ft of the remaining space into offices. This shift points to a problem in London's high-end market people just aren't as keen on luxury property as they were a year ago.

Prices for prime London properties fell by 5.8% in 2016, despite the weaker pound, which was expected to inspire overseas investment in London property. Sales were down 21% in the most expensive areas of the capital, including Kensington and Westminster, according to property investment fund London Central Portfolio (LCP). In central London's new-build market, sales fell to their lowest levels since 2012, based on data from consultants Molior London.

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Sarah is MoneyWeek's investment editor. She graduated from the University of Southampton with a BA in English and History, before going on to complete a graduate diploma in law at the College of Law in Guildford. She joined MoneyWeek in 2014 and writes on funds, personal finance, pensions and property.