In one year from now the British electorate will go to the polls, and
property issues are more than likely to be high in their minds.
According
to the latest research from Knight Frank annual price growth in prime
Central London was 7.5 percent for the third consecutive month in April,
a figure that has changed little over the last year. Meanwhile, the
number of consecutive monthly price rises reached 42.
With the general election scheduled for May 7, 2015, such consistency is unlikely to be repeated over the next 12 months.
According
to the real estate agency uncertainty is likely to intensify as the
prospect of the election comes into sharper focus after the summer.
Activity typically slows in the run-up to a general election, and this
is likely to dampen price growth in prime central London.
 |
Tax changes over recent years, which have been
implemented or which are due for introduction – appear to have been
priced in to some extent. However the prolonged period of consistent
growth suggests the market is waiting for clarity from the political
parties on their policies and their likely impact in central London.
Ahead
of a rise in political campaigning in the autumn, more owners have
started to explore a sale which, alongside the usual post-Easter
seasonal rise, means more stock is likely to come to the market over the
next few months.
Knight Frank reported that annual growth
figures across prime central London of 7.5 percent compares to 11.4
percent two years ago and is largely being driven by the strength of the
sub-£2 million market, where prices have risen about 13 percent. That
compares to 6.3 percent for homes worth between £2 million and £5
million as growth slows in the higher price brackets where increases
were stronger in the immediate aftermath of the financial crisis.
The
Marylebone and City & Fringe districts registered the joint highest
annual growth of 15.7 percent as buyers sought better value to the
north of Hyde Park and further east.
Monthly growth across prime Central London was 0.8 percent during April, the highest rate since March 2013, noted Knight Frank.
Andrew
Batt, International Group Editor of PropertyGuru Group, edited this
story. To contact him about this or other stories email andrew@propertyguru.com.sg
Our editors’ pick of recent stories you may have missed:
EIA backlog is causing concerns
Overseas buyers shun Thailand
Thailand ranked sixth by Asia-Pacific retailers
Harry Potter house for sale
If you have a property story you want us to publish email andrew@propertyguru.com.sg