The luxury housing market, which had been strong throughout the recession, has fallen with as warnings have come forth of a weakening demand from buyers due to economic and political uncertainty.  European countries are still struggling hard to come back from the global recession and once strong Germany, the largest economic country in Europe, is facing a possible recession.  According to research carried out by and reported by Financial Times, the data firm Lonres and the analysis company Dataloft, the high priced property areas of Knightsbridge, Chelsea, Kinsington and Belgravia fell by one third on the year during the third quarter.

The hardest hit properties were houses which dropped in transactions of more than 50% while apartment and flat sales fell by 27%.

Fault of the slowdown is being blamed on new property taxes and the strength of the pound in the global financial market according to the report. 

There are still a lot of properties on the market as demand from buyers has lessened which is contributing to buyers feeling they have plenty of time to decide on a property as there is little competition compared to earlier in the year.

London’s property market cool down comes at a time when other areas around the UK are stabilizing as well.  The overall picture has contributed to experts withdrawing their fears of a housing market bubble.

Meanwhile, those that do want to purchase a property or homeowners seeking to stay put and remortgage have low interest deals available from lenders.  The cheap mortgage and remortgage deals may not last for long though and experts suggest that shopping around should be a high consideration for those that could benefit by a low cost, long term loan.