Market Report

Key Points

• The average price of a London home rose by 13.5% in the year to February 2015, to £530,368. In prime central London, annual price growth was 0.8% in the year to March 2016.
• Transactions volumes increased in central London, prompted by the stamp duty deadline on April 1 for investment properties and second homes.
• Across London, rental values increased by 4.8% in the year to February 2016, but in prime central London rents fell by 1%.
• The supply of rental properties has increased as those considering a sale have opted to become landlords rather than accept lower offers, confident in the long term prospects for prime London properties.
• While the prime market is expected to continue to slow in 2016, a return to stronger market conditions is expected in 2017 as fundamentals such as a weaker pound, more realistic pricing and London’s continued international appeal take effect.