Prime Central London property prices have fallen significantly over the past year, but market analysts believe that this is a temporary lull, and that now might be the ideal time to invest.
According to the latest research from leading property body Savills, Prime Central London property prices have fallen by 6.8 per cent year-on-year.
Prices are down 3.9 per cent from peak highs recorded in 2014 – but Savills’ data suggests that values were recovering substantially up until the European Union (EU) Referendum, and that recent falls could be a temporary lull spurred on by the political uncertainty of recent times.
Lucian Cook, head of residential research at Savills, explains: “Ahead of the vote to leave the EU, there were signs of a market bottoming following the adjustment triggered by the December 2014 Stamp Duty reform, and some locations had started to show price growth, but increased political and economic uncertainty has weakened fragile buyer sentiment.”
Despite this, however, Mr Cook insists that “Prime Central London continues to be considered a relatively secure investment asset in a global context.”
According to Savills, certain areas of Prime North and North West London – where prices have fallen by six per cent in the past year – are the best for long-term investment.
This is because property prices in these areas have risen by a staggering 36.1 per cent over the last ten years – representative of the largest climb of all Prime London areas.
Reports suggest that this trend is likely to reappear if London’s property market is able to shake off ‘the Brexit blues’.