The Real Deal New York

London luxury home price growth slows to a crawl

While in NYC, the luxury home sector is outperforming the market

April 03, 2015 03:50PM

From left: Billionaire's Row in London and Billionaire's Row in New York

From left: Billionaires’ Row in London and Billionaires’ Row in New York

The luxury markets in New York City and London often draw comparisons. But at the moment, they’re showing very different trends.

Whereas the top of New York’s luxury market is doing well at the moment, home prices in London’s 13 most wealthy neighborhoods are growing at the lowest increase in almost five years, according to Bloomberg. The slow increase is partially due to uncertainty about the outcome of next month’s general election there. The Labour Party has vowed to introduce a “mansion tax” on homes that have been valued at more than 2 million pounds if it wins the elections. A similar tax was introduced in New York last year.

Prices in the wealthiest areas rose 3.3 percent during the 12 months through March and values remained flat over the last six months, according to the website.

“One of the most unpredictable elections in decades has caused some buyers and sellers to postpone decisions until there is clarity around the outcome,” Tom Bill, head of London residential research at Knight Frank, said in a statement. [Bloomberg] — Claire Moses