The prime housing markets of London are likely to return to growth as the uncertainty clears, according to new research by leading real estate firm Savills.
“However, given the changed economic and tax environment, it may not be the kind of double-digit growth that we have seen when markets have bounced back in the past,” Savills cautioned in its outlook for the Prime London property market for the next five years.
The Prime Central London property prices are set to grow by 12.5 per cent over the next five years while the price growth forecast for other London properties is 7.1 per cent. Residential property prices in London’s outer commuter areas are also expected to grow by 10.9 per cent. Likewise, the five-year forecast for the prime regions is 11.5 per cent growth in house prices.
The number of prime new build starts has fallen below the number of prime build sales for the first time since 2009, a sign of a much more stable market.
London’s evolution as a Tech City is likely to help underpin demand. However, the outlook for other prime London is reliant, to a large extent, on the capital maintaining its status as a global financial centre, Savills said.
The market will remain price sensitive and driven by needs-based purchases: Savills