Elle Macpherson has dropped the asking price of her home by £2 million.

The Australian supermodel put the seven-storey property in London's Notting Hill district up for sale with a £9.5 million price tag last summer.

However, after failing to receive any acceptable offers, the mother-of-two slashed the price to £8.95 million in January and has now dropped it again to £7.5 million - a 21 per cent reduction on the original price.

Elle bought the house - which was built in the 1850s and boasts six bedrooms, five bathrooms and a 36ft-long kitchen - in November 2006, when the British housing market was at its peak.

However, due to the current economic downturn, prices have fallen dramatically since then.

Although she may be struggling to sell her house, Elle's business empire is going from strength to strength.

The 45-year-old model - who has previously branched out with her successful Intimates underwear line and a range of beauty products - created a cashmere line of jumpers for her brother and sister-in-law's label, Banjo and Matilda.