Prime property discounts fall sharply

The proportion of prime properties (those worth over £1m) currently for sale that have been reduced in price since originally coming onto the market now stands at only one in five (21%), down sharply from 28% one year ago. The average discount on those properties that have seen a price reduction is currently 8.9%.

Lawrence Hall of, said: “Anyone who thinks that property buyers at the top end of the market are less price sensitive is mistaken.

“Even more so, because the numbers are so much bigger, prime buyers are always looking for the best possible deal.

“Whilst there are less discounted properties on the market than in recent years, there are still some areas where prices have been reduced significantly and bargains are to be had.”

One such area is Bromley in South East London which has the highest proportion of discounted million pound homes for sale with almost half (49.3%) of those on the market currently having been reduced to tempt buyers.

Barnet and Rickmansworth, both in North London, round out the top three locations with the highest levels of reduced-price prime properties at 33.9% and 31.2% respectively.

At the other end of the scale, only 10% of Edinburgh’s prime properties currently on the market have been reduced in price to attract buyers.

The market for million pound homes in Guernsey and the Isle of Man appears strong with each having amongst the lowest proportions of discounted prime properties in the UK, at 12% and 13.6% respectively.

Unsurprisingly, some of the lowest levels of discounts on offer on prime properties are in London suburbs including Kingston upon Thames (4.2%), Northwood (4.6%) and Richmond (5.3%). However, prime property owners in Newcastle and Oxford appear less confident about their original asking prices with the average discount on million pound Tyneside homes at 20.6% and in Oxford currently at 14.1%.