Top-end property sellers accept price cuts says Savills

Sellers at the upper end of the London housing market are being “more realistic” this year and accepting price cuts of up to 10%, the boss of property company Savills said Wednesday.

The international firm’s UK estate agency business saw sales slide 3% to £124 million last year, but chief executive Jeremy Helsby said trading had picked up in the first two months of 2017.

In London stamp duty hikes and Brexit uncertainty have hit the market for homes above £2 million, although the pound’s recent fall has tempted international buyers.

Helsby said: “There’s a few challenges getting vendors to be realistic on their pricing, like everybody selling a house you always have the expectation of the previous market. That realism is now coming into the market. Vendors are accepting they have got to take the price cut — depending on where you are, around 5% to 10%.”

Savills also weathered a slowdown in commercial deals last year and recently advised China’s CC Land on the £1.1 billion purchase of the Cheesegrater skyscraper.

Asia and Europe were strong performers as pre-tax profits rose 12% to £135.8 million.

Peel Hunt analyst Clyde Lewis said: “The group has indicated that 2017 has started well and has a pipeline of work carried over from 2016, which we believe means there will be at least a 7-9% upgrade to consensus estimates even if Brexit and Trump concerns remain.”