Capital’s prime property “stabilises”

London’s prime property appears to be stabilising, compared to the rest of the capital’s market.

The first London Central Portfolio/Acadata shows price growth in the prime property market have grown by 2.4 per cent during the past three months of 2017.

However, sales have fallen over the past year, with a 9.5 per cent fall – representing a 34 per cent decline since 2013.

Overall, the capital has seen a drop in average prices, which has been reflected across England and Wales.

There has been some growth recorded in the new build sector with a seven per cent increase in prices over the past 12 months, making the average price now £345,118.

Naomi Heaton, LCP chief executive officer, explained London’s prime market has been hit by tax changes in recent years.

“On top of this, an unsettled political backdrop and the slow progress on Brexit negotiations has further dented sentiment, resulting in a picture of price volatility and falling transactions,” she said.

“Nevertheless, there were signs towards the end of 2017 that prices were stabilising with four consecutive months of marginal price growth, culminating in fourth quarter growth of 2.4 per cent.”