The Cadogan Estate feels pinch as London house prices fall
Chelsea and Knightsbridge landlord The Cadogan Estate on Monday revealed that the value of its residential arm fell for the first time in five years, as it emerged that asking prices for London homes have shrunk.
The estate’s chief executive Hugh Seaborn said the value of the residential business slipped 1% to £2.03 billion.
The division comprises around 700 rental homes and swathes of houses of which it is the freeholder.
He told the Standard: “We were expecting a fall on the back of stamp duty changes deterring some buyers, and Britain’s vote to leave [the EU] making people more cautious about renting and buying. Demand is certainly more muted and we expect the high-end residential market to remain soft for the short term.”
His comments came on the same day that property website Rightmove said asking prices in London fell 2.9%, equivalent to more than £18,000, in the month to September 9.
The Cadogan Estate said it still managed to grow its property empire by 2.4% to a record £5.99 billion.
Rental income surged 10% to £142.7 million.
The firm was helped by a leap in retail property values thanks to a spate of luxury fashion brands such as Giorgio Armani and Delpozo signing leases for shops.
The year also saw the establishment of Pavilion Road as a new neighbourhood independent retail shopping district, with a butcher, cheesemonger and greengrocer.
