The London property market proved resilient in the face of economic uncertainty and short-term political upheaval in 2016. Buyers jumped in where they saw good value, good locations or both, and we have seen this trend continue into 2017.
Despite Government changes on loan interest and the introduction of higher stamp duty in April 2016, the overwhelming majority of landlord investors remain undeterred. The medium- to-long-term view they are taking means that the investment market remains strong.
We expect to see a slight price adjustment as purchasers factor in the higher stamp duty, but that’s nothing new as we often see prices ebb and flow during the year. We anticipate property prices to continue rising steadily, and that they will double by 2030.
So what can we expect from London's property market this year? Simon Rubinsohn, Rics chief economist, said tax changes have had a significant impact on central London prices, and that in the near-term, prices might "slip a bit more". But, over the next year the market will be more stable, he said, as much of the price correction has happened already. "There are signs that perhaps there will be a more stable trend in prices," he said. "You're not going to see prices shoot up though."