Market Report

Key Points

• The average price of a London home rose by 12.4% in 2015 to £514,097. In prime central London, annual price growth was 1.2% at the start of 2016.
• Sales volumes dropped in 2015, particularly for homes over £2 million, following the increase in transaction taxes (stamp duty).
• Across London, rental values increased by 6.3% in 2015 but in prime central London the increase was just 0.2%.
• Demand for rental is suppressed in the short term by uncertainty on financial markets but in the longer term, renting may become a more attractive option than buying for many short-term residents.
• London remains attractive as a centre for capital preservation, even though the prospects of short term capital appreciation have diminished.