Yes, there's a slowdown underway but it's currently largely reflected in a big drop off in transaction volumes rather than across-the-board price cuts. The pullback in sales was widely anticipated after many purchases were rushed through to beat the latest policy change on stamp duty (a levy on purchases) which was implemented by the U.K. government on April 1.
The concern is if the gummed-up market persists, anxious sellers and agents could start aggressively dropping prices, potentially causing a negative downward spiral.
Within this broad brushstroke, there are nuances, however. Sales of existing inventory are holding up moderately better than those of new builds. One key factor, however, is lack of affordability – an issue throughout London but particularly concentrated in certain areas.
According to Lloyds Banking Group's Housing Economist, Martin Ellis: "London is the only part of the U.K. where mortgage payments are above their long-term historical average as a proportion of take-home pay."