Prime London property prices stuttering towards middle of the year

Prime London property prices stuttering towards middle of the year [Photo: mbbirdy via iStock]

The price of houses in the Prime London property market saw a slight dip in the second quarter of 2016, according to the latest report released by real estate advisor Savills. 

Uncertainty has been the order of the day for the property market for much of the last few months, and in the April to June period this was a particularly prevalent sentiment as the referendum on the European Union (EU) loomed large over the market. 

Buyers were simply adopting a wait and see attitude throughout most of April and May in particular, and prime London was no exception to this rule, with buyers having been notable by their absence throughout quarter two. 

Property in this market was down slightly on quarter one, with the three-month index indicating a fall of 0.2 per cent when compared to the January to March period. On a yearly basis, there was also a drop of some 0.7 per cent, while there has been a drop of 1.4 per cent since December 2014, when Stamp Duty bands were altered and high value home purchases became more expensive in terms of taxation.

Prime Central London was hit hardest throughout this period, according to the data, with quarterly prices having fallen by 1.4 per cent, final sale values down by 3.9 per cent when compared to the same period a year ago, and an eight per cent fall in evidence compared to the tail end of 2014.

It's expected that even though the referendum did not go the way most people thought, and the way the property market had hoped, that these price falls will start to reverse in months ahead as property finds its post-Brexit feet. 

Lucian Cook, head of residential research at Savills, said: "There have been conflicting signals in the market in the period post referendum, which suggests the impact of a vote to leave the European Union will only become clear over coming months as the market finds its level."