Prime London market 'possibly showing first signs of recovery'

Two years of stagnation fuelled by Brexit uncertainty and stamp duty increases may be coming to an end in prime central London according to an analysis by an investment firm. 

London Central Portfolio says an increase in average prices paid in the second quarter of the year - the latest data available - may be at least partly down to a number of particularly high-priced deals.

Nonetheless, LCP’s analysis of Land Registry data reveals that sales volumes have strengthened slightly, with an annual increase of 4.8 per cent to 3,885.

Average prices reached £1,946,151 in Q2 2017, representing quarterly price growth of 7.9 per cent. This period saw the most expensive sale ever to transact through Land Registry at £90m for a flat in Knightsbridge.

However, the most active sector in the quarter was the £5m to £10m bracket, where the proportion of sales increased by 23 per cent over Q1.

“Looking at the monthly breakdown gives us a clearer picture of what is really happening in the market overall.” suggests Naomi Heaton, chief executive of LCP.

“Whilst bumper transactions boosted average prices to as high as £2.2m in April and May, which included the most expensive sale to register through Land Registry at £90m, June reflected a more sedate picture with average prices falling back to £1.65m.”