22 Oct

London prices set to accelerate

London prices set to accelerate

The cost of homes in central London could rise by 21.5 per cent over the next five years, claims new research.

According to the latest Savills' Prime London Index, prices over 2015 and 2016 for mansions, townhouses and luxury apartments in the capital are set to be muted, but will quickly accelerate in the long-term.

It is expected prices for such homes could fall by two per cent over the next 12 months - largely due to the recent changes in the stamp duty tax and mortgage rules.

However, in the long-term luxury properties will increase in value as demand continues to push prices for prime real estate in the most attractive areas of the city where supply is limited.

"Stamp duty reform, very low inflation and the mortgage market review will continue to moderate London’s prime housing markets over the short term, but the fundamentals of wealth generation and demand point to steady medium-term price growth," said Lucian Cook, head of residential research for Savills.ADNFCR-1222-ID-801803650-ADNFCR

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