Property prices in Central London has dropped by 30%

The number of transactions in the market of elite real estate of London has grown over the last three quarters of 2016 after a fall in prices in 2016 by 7%.

For many years property in London has in its Central part has been a driver of market prices of real estate in the UK. The situation changed dramatically in 2016, after the December change of the scale of Stamp duty in December 2015. For the first time a property in England in the South East of England, East and the South West showed a rise of prices higher than in London. The growth in property prices in the whole of the UK was 4.1% in Q1 2017, but Prime Central London is in your trend from the national average. After falling 7% in the 1st quarter of 2017, prices on “luxury” – the estate fell by about 13% from their peaks in 2014. At the same time, the 1st quarter of 2017 showed the first signs of increasing activity in the market of elite real estate of London. Apparently, the market has reached the point of balancing and buyers tend to think the price is reasonable.

Absolutely opposite situation in the market of rent of elite housing in Central London. Rental rates storm new heights, an increase of 22% in Q1 compared to the same period in 2016.

The data presented in the quarterly report Strutt & Parker show that in the sector of up to £2 million residential property prices fell by 32% in the first quarter of 2017, compared with prices a year earlier. However, subsequent Brexit the fall of sterling has made UK property popular in the eyes of foreign buyers and market activity has increased markedly.

Meanwhile, on the market range up to £2 million continue to be dominated by local buyers, giving at the mercy of the foreign market more expensive than £2 million where foreigners are actively using the strength of the dollar against the pound sterling.

A specialist in economic forecasts Strutt & Parker, Volterra believes that prices for houses and apartments in the whole of great Britain will grow by 3% in 2017, while prices for Prime Central London in the best case, remain unchanged. The increase in Stamp duty and Brexit already priced in by the market, but political uncertainty will continue to influence the market, preventing price increases.

® Alice Morgan. 10.05.2017 G.

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