The prime central London market in particular is undergoing a period of adjustment following years of extreme growth – prices have increased by nearly 90% since 2008.
Ebbs and flows are to be expected, but Dexters can confidently say that there is still upward pressure on prices, with the overall trend being that of gradual increase.
It’s important to remember that the prime Central London market is still adjusting to reflect the recent increase in stamp duty. Following the recent Autumn Statement we can assume that the duty is here to stay for the foreseeable future, so we can begin to expect less volatility in terms of prices.
London house prices will stall next year as slowing growth and higher inflation eat into household incomes, according to the annual survey of 48 leading economists by The Times. After years of runaway growth that has seen the average price of a home in the capital soar from £294,000 before the crisis to £474,000, the majority of the respondents expect London prices to flatline or contract in 2017. Of the 39 economists who provided a prediction for London prices, 22 said they would end the year unchanged or lower. The gloomy outlook was countered by a more positive view for the country as a whole, where prices are expected to continue to climb, albeit at a slower rate than the 6.9 per cent at which the Office for National Statistics said they ended the year.