It expected Prime London prices to fall by 1% next year – though in the long run it predicted a price increase between 15% and 18% in the next five years.
Prime Central London will experience another year of critically low transaction levels and negative price growth due to higher buying costs and economic uncertainty, search agent Banda Property has predicted.
It expected Prime London prices to fall by 1% next year – though in the long run it predicted a price increase between 15% and 18% in the next five years.
Louisa Brodie, head of search and acquisitions at Banda Property, said: “London’s golden postcodes are in stalemate going into 2017 and this is unlikely to change in the foreseeable future.
“Buyers are waiting for the Harrods sale of property but frankly, Prime Central London is locked down by foreign cash long-term, while competition for lower value homes in emerging locations and regeneration areas such as Brixton and Shepherd’s Bush will continue to support prices.
“2017 will be a slow and stagnant year for Prime Central London, but longer term price growth is still looking positive.”
Banda felt stamp duty charges will suppress activity, driving investors to buy cheaper stock elsewhere.
However expected the fall in the value of the pound after the Brexit vote to make the market more appealing for overseas buyers, particularly American high net worth.
And it said underlying demand for London property under £1m is strong, as it described areas on the periphery of Central London, such as Shepherd’s Bush and Paddington, as the “engine room” of capital’s property market.
