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London’s priciest mansions struggle to sell as luxury property market faces change

Rutland Gate, considered as London's priciest home, almost sold earlier this year for £25m below asking price.
Rutland Gate, considered as London's priciest home, almost sold earlier this year for £25m below asking price.

Economic headwinds are taking a toll on the two priciest mansions in London, reports suggest, as the luxury property market continues to adapt.

The two properties – Rutland Gate and The Holme – are on the market with a combined listing of £475m.

A person familiar with the matter told Bloomberg that founder of real estate firm China Evergrande Group Hui Ka Yan nearly sold Rutland Gate earlier this year for some £200m, which was £25m below the original asking price.

The home was under offer from a Middle Eastern buyer before negotiations fell through, sources told the outlet, but another is on the table – yet still below the asking price.

The Holme, formally owned by the Saudi royal family, received dozens of visits from potential buyers this year but has yet to receive any offer near its £250m asking price, sources told the outlet.

The priciest of struggles come amid a difficult year for London’s property market, as luxury homes attempt to shrug off cost-of-living concerns.

The value of luxury flats in London’s poshest postcodes has fallen by 6.1 per cent in the last year as the capital’s mega rich put off buying homes amid the cost of living crisis.

According to a new report by Investec Wealth & Investment, shared with City A.M. last week, in the last year the average price of London properties worth over £1m fell by 2.5 per cent or nearly £50k.

One of the emerging trends of the collapse of London’s property market has been wealthy individuals renting out homes instead of buying. 

The number of homes in London worth over £15m purchased by billionaires and millionaires in London came to a total of £340m between January and June, according to a study by Beauchamp Estate.

This is down from £400m in the first half of last year and £514m during the six months of lockdown back in 2021.

Over the same period between 10 to 11 super-prime homes per month have been rented for values over £5,000 per week, with multi-millionaires and billionaires spending almost £15m to rent homes in London’s best addresses over the first six months of 2023.