A six-bedroom Victorian house in Bedford Park, west London, has had its asking price cut by 40 per cent, from £3.2 million to £1.9 million, in what is believed to be Britain's steepest property reduction. The home, owned by the Grabiec family, was first listed in early March, but a collapse in buyer interest forced successive cuts in April, May, and June.
Estate agents said the property was initially overpriced, with no house on the same street ever selling for more than £2.1 million. Despite extensive modernisation including a new roof, plumbing, wiring, and bathrooms, the home failed to attract offers even when viewings were high. A spokesman for agents Faron Sutaria said: 'I think it's going to go pretty quickly now, but it started a bit too high.'
The reduction reflects the broader impact of the credit crunch on the UK housing market. Mortgage approvals hit an all-time low of under 28,000 in May, less than a third of the peak in February 2002. Analysts predict house prices could fall by 35 per cent from their peak by late 2010 or early 2011, with London prices expected to drop 12 per cent this year and next.
Other London properties have seen cuts of 20 to 30 per cent, including a six-bedroom house in Chelsea reduced from £1.7 million to £1.2 million. The Royal Institution of Chartered Surveyors and Rightmove report that the London market is struggling, though the top end remains buoyant due to foreign investors. However, first-time buyers face affordability constraints, and City job cuts are expected to further depress prices.
