21 Aug Prime property market in UK remains subdued but growth is forecast
The top end of the UK property market remains difficult at present but the prime central London sales market saw a quarterly rise in the second three months of the year, new research shows.
Overall sales in the prime central London market increased by 24% compared to the first quarter of 2015, according to the latest data from estate agent Strutt & Parker.
However, when compared to the same period last year, the results are less positive, down by 9% on the second quarter of 2014.
The data also shows that properties over £2 million are 27% down in terms of the number of transactions in the same period last year, but 40% up on the first quarter of 2015. Properties under £2 million are 1% down on the second quarter of 2014 and 20% up on the first quarter of 2015.
Strutt & Parker is forecasting price growth of 2.5% in the prime central London market overall in 2015, and in the medium term, the outlook for 2016/2018 remains for 6% growth per annum. For the UK as a while it expects growth of 5% in 2015, rising to 6% in 2016, followed by 7% for 2017/2018.
‘The increase to stamp duty, along with the general election uncertainty and the recent changes to non-dom status, have meant that individuals have been more hesitant with purchases as they seek additional advice,’ said Charlie Willis, head of London residential at Strutt & Parker.
‘However, this has not stopped buyers purchasing our highest quality stock as prime central London remains a very attractive place to live,’ he added.