Figures from the Land Registry and Rightmove show the difference in expectation and reality in London’s prime market.
Online estate agency Emoov.co.uk said while prices in top tier areas such as Islington, Westminster and Camden had fallen in August, the amounts being asked by sellers on the property portal had increased by 6.9% in prime areas for October.
And while vendors wait to sell, their properties may be losing thousands of pounds a month assuming the trend in the Land Registry data continues.
Those in Westminster, for example, saw the biggest drop of 6% equating to a loss of about £2,100 a day. Owners in Islington and Camden experienced daily reductions of £230 and £60 respectively.
Emoov.co.uk founder and CEO Russell Quirk said: “The property market in prime central London has taken a beating in the past year, but despite this, homeowners are still pricing their properties unrealistically for current market conditions.
“Although the London property market as a whole remains stable despite buy-to-let Stamp Duty changes and the referendum, the upper end of the market is dwindling in desirability.
“It is unlikely that the rate of decline seen over the last month in the likes of Westminster and Islington, will remain consistent over the following 11 months.
“However, this latest research stands as a warning to London’s most prestigious homeowners of what could happen and evidently already is.
“The latest figures from Rightmove show homeowners in prime central London are in denial and are pricing their properties way too high.
“Their once trendy townhouses and flats are no longer as sought after as they once were and, if they want to secure a sale, they need to drop their prices for the current market climate.
“Holding out for that extra £10,000-£70,000 today could result in a loss of hundreds of thousands of pounds this time next year.”
The Land registry showed the average house price in Westminster had fallen to £964,808, dipping down below the £1million mark.
Emoov.co.uk calculated that should month-on-month falls remain the same across the three boroughs mentioned for a year, owners could lose between £600,000 and £780,000 over the course of 12 months.
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