There has been a crash in the super-prime sales market – classified as homes valued at above £10m.
According to new Land Registry data, the number of sales of super-prime properties was 86% down in the three months to August, compared with the same period last year.
There were just five transactions – all in London – compared with 35 in the same period in 2015.
No new builds priced at over £10m were sold at all. In the same period last year, they made up 23% of sales.
The average price paid for the top five most expensive properties also fell 25%, from £22m to £16.3m.
Property investment firm London Central Portfolio says that the reduction could mean a shortfall of £45m in Stamp Duty Land Tax receipts by the Treasury.
The most expensive sale between June and August this year, as recorded by the Land Registry, was £25m for a terrace house in Eaton Square, Westminster.
History suggests that UK house price crashes begin at the top before filtering downward, and also begin in central London before filtering outwards.
However, every housing market is different, and while there is famine at the top of the London market, there is feast at the bottom as prices rise across average properties.
Agents Jackson-Stops & Staff forecast that across the whole of Greater London there will be no properties available at under £120,000 by the end of this year. There are already no properties at under £100,000 – they died out completely in 2008.
In 1995 nearly 75% of London properties sold were less than £100,000.
The firm forecasts that properties under £200,000 will vanish by 2020.
The average house price in London is now £484,700, over twice the national average of £216,750.
In 1995, when the £10,000 London property disappeared from the market, nearly 75% of properties sold were for under £100,000.