21 September 2016
Prime property prices in central London are expected to have fallen over 2016 by nine per cent by year’s end and will not return to growth until 2019, according to a report from Savills.
But the estate agents said that in the three years 2019-2021, anticipated price growth was 21 per cent among £4 million-plus properties in areas such as Mayfair, Knightsbridge, Chelsea and Belgravia.
The report said that the top end of the market in London had been heavily impacted by changes to stamp duty, including April’s three per cent surcharge on second-home buyers, and by uncertainty surrounding the referendum vote to leave the European Union.
Savills said this would lead to the fall in the value of the expensive properties, knocking some £360,000 from their value over the course of this year. The forecast surprised some analysts who had been expecting the prime market in London to pick up because of the tumbling value of sterling since the Brexit vote.
But Savills said, “Post-referendum uncertainty has compounded the impact of successive tax rises on values in London’s prime housing market, and will delay the sector’s return to growth.”