Upmarket property group Savills (SVS) has reported a 45 per cent drop in London sales and said the market downturn had begun to impact on prime country properties.
Savills said prices were being adjusted downwards by 7.5 per cent in central London, with only the “very top end” of the property market, where values exceed £5 million, proving “relatively immune”.
In a trading update, Savills said prime country property was following the lead of London after initially holding up well.
Savills blamed the downturn on reduced access to mortgage finance and said the difficult trading conditions were now being seen in Europe. The company is best known in the UK for its estate agency and commercial property investment businesses, although the group operates in property planning and valuation consultancy, fund management, financial services, and property management, which contribute 40 per cent of operating profit.
A quarter of revenues come from businesses across Asia Pacific, which has been more resilient.
Shares were down more than 10 per cent yesterday, closing at 193p, down 22.25p, after the company said it would be difficult to predict full-year results.