The ‘lower priced’ 80 per cent of homes in prime central London are seeing price rises again, giving hope they have at last factored in stamp duty rises - but the top 20 per cent remain at a lower average price now than three years ago.
Research from property investment specialists London Central Portfolio suggests that from late 2014 (when ex-Chancellor George Osborne’s stamp duty reforms were announced) to the end of the first quarter of this year, double digit growth was recorded for the bottom 40 per cent of the prime central London market.
This is where prices are under £936,000 - the threshold below which stamp duty remained the same or was made cheaper by the Osborne reforms.
Within this sector the very bottom 10 per cent, where prices average £388,688, has seen the strongest performance, recording a 16 per cent increase in this time.
But LCP warns that in contrast, a discernible price correction has been recorded for the top fifth of the market in the capital’s prime centre.
For example, properties in the 80 per cent to 90 per cent segment - where prices average £2.8m and have seen soaring stamp duty - recorded no price growth over the period.
And in the very top 10 per cent segment, where prices average £6,515,594 and where stamp duty has doubled on average, prices now stand some eight per cent lower than in Q3 2014, just ahead of the Osborne reforms.