Sales of most expensive London homes slow down in January

Sales of the most expensive homes in London dropped to their lowest level in seven years in January as pending changes to stamp-duty tax drove a wedge between buyers and sellers.

A total of 167 existing homes changed hands in the poshest neighbourhoods of the capital last month, Bloomberg reported, citing figures from London-based broker Huntly Hooper Ltd., that was 30% less than the average volume for that time of the year since 2010.

On average, selling prices in the best districts edged higher by 1.8% above the previous year's level, according to he broker, even as asking-prices jumped by 19%.

"People are waiting to see what impact the stamp-duty change in April will have on the market," said Oliver Hooper, the broker’s director.

"There’s a hold-off between buyers and sellers at the moment because of the discrepancy in pricing."

In December 2014, the chancellor increased the the stamp-duty transaction tax to as high as 12%.

Weaker demand from Chinese and Middle Eastern buyers, as a result of weaker growth and crude oil prices on the retreat, will result in a sharp downturn in the highest-end residential markets in London and New York in 2015, Blackstone Group LP Vice Chairman Byron Wien predicted in January, Bloomberg said.