Price growth of Prime Central London shows significant boost in spite of Brexit

Mainstream and premium sectors of Prime Central London have shown a rise over the last 12 months, according to recent Price Paid Data from Land Registry and Acadata.

It could signal a recovery from price falls following residential tax charges and the uncertainties of Brexit. It is said that PCL’s mainstream region has seen a price growth of 5.6 per cent from one year ago, when prices had risen before Additional Rate Stamp Duty.

This has brought average prices to £822,812, which is 15.6 per cent higher than three years ago, before Stamp Duty was changed from a ‘slab’ system.

Naomi Heaton, CEO of London Central Portfolio, commented: “The mainstream buy-to-let sector in Prime Central London has experienced unusual volatility over the last two years, suffering from a number of tax changes aimed at cooling the sector.

“After a price fall immediately following the change to a graduated system, prices fell again in 2016 when the Additional Rate Stamp Duty (ARSD) for second properties came into effect.

“Despite this, we have now seen signs of recovery as buyers absorb the additional cost of investing [and] Brexit jitters also appear to be calming down as global political and economic uncertainty makes the UK an attractive place to invest in once more.”

It has been said that the general market in England and Wales has shown growth of 7.1 pd since 2014’s tax changes.

Heaton concluded: “It is reassuring to see that Land Registry data is showing prices in the premium sector down just 3.3 per cent below their 2014 levels.

“This is despite falls in the first two quarters of this year following a market ‘bounce’ as it assimilated the initial impact of ARSD. Discounts offered on expensive property has reinvigorated buyers, encouraging them back into the marketplace.

“International investors have also taken advantage of current exchange rates and continuing low interest rates. Whilst there may be further volatility to come, particularly with the Autumn Budget on November 22, these findings are certainly encouraging.”

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