The Prime Central London sales market continued its move towards recovery mode in December 2017 with the transaction volumes increasing by 5 per cent in the six months to November, according to the latest Prime Central London Sales Index from international property consultant Knight Frank.
Though prices have fallen in the Prime Central London market where residential assets are amongst the most expensive in the UK, the property market remained stable. While average prices fell 0.7 per cent on an annual basis, the average prices rose by 1.9 per cent in the year to December for homes valued at between £5 million and £10 million.
“Higher rates of stamp duty had a more immediate and marked impact at the higher level of the market last year - which led to a quicker response in asking price adjustments and a more rapid recovery this year,” Knight Frank said.
However, the recovery in the Prime Central London market demonstrates the strong fundamentals of London’s property market, which has consistently delivered ROI to investors.
The Prime Central London Sales Index is based on repeat valuations of second-hand stock and does not include new-build property, although units from completed developments are included over time.
Knight Frank's Prime Central London Sales Index has tracked the performance of London's luxury property market since 1976.