Home Counties prime property discounts outstrip London, says Investec

Investec’s research has highlighted a trend where prime properties in the Home Counties are seeing larger discounts than those in London, with an average price reduction of 10% compared to London’s 8.6% on properties over £1m. This insight is based on data collected from a substantial number of properties between June and December 2023.

In the Home Counties, West Sussex leads with the highest average price reduction both by value (£187,805) and percentage (12.6%). Berkshire shows more resilience with the smallest average reduction (8.5%) but also records the slowest sales, taking 111 days on average for properties above £1m to sell.

London’s prime property market has smaller average price reductions, with variations across postcodes. NW3 saw the smallest reductions at 4.8%, while W2 and W8 experienced larger decreases of around 12%.

Carlos Mendes, a private banker at Investec, pointed out the importance of understanding local market nuances: “The Home Counties are often referred to as a collective, but our research shows that there is a significant variation in the availability and price of prime property in these areas.”

He also mentioned the influence of commuting and lifestyle factors: “The gradual return to office-based working has brought the commute time firmly back into focus… Proximity to top-performing schools also remains a key priority, as does access to good local restaurants and amenities.”

Mendes advised on the importance of tailored financial solutions for property investments: “Every property purchase is unique, and every person’s financial situation is unique. It’s therefore important that high-net-worth individuals work with lenders who understand their ideal home and location so they can access a mortgage that meets their needs, in a timeframe that allows them to seize opportunities.”