Despite the general election result, it was never going to be ‘business as usual’ in the prime London property market, says Tom Bill.
- Annual growth in prime central London declined to 1.7 per cent in August as changes to stamp duty dampened demand
- The number of £1 million-plus sales in London declined by 21 per cent in the year to April 2015
- New “£1 million London neighbourhoods” include Hammersmith, Maida Vale, Queen’s Park, Muswell Hill and Vauxhall
- Annual price growth in prime outer London fell to 3 per cent in August though activity was stronger in markets with higher levels of UK demand
- Annual rental value growth decreased to 2.5 per cent in prime central London and 1.2 per cent in prime outer London due to jitters over China and high stock levels
- Macro View: Chinese currency and stock market nerves
Tom Bill, Knight Frank’s head of London residential research, comments:
“As a cooling measure, December’s stamp duty rise for high-value property has succeeded. Activity levels have become more subdued and annual price growth in August was 1.7 per cent, down from 7.7 per cent a year ago. All of which led to a temporary pause over the summer as buyers digested recent events.
“The strength of the UK’s economic recovery means demand is poised to pick up in September, a theory reinforced by the recent performance of markets more closely aligned to the UK economy.
“For the above reasons, price growth in prime London will be steady rather than heady in the coming months.”