Savills has predicted that house prices for prime central London will rise by three per cent in 2020 and a total of 20.5% by 2025 after nearly six years of sliding prices and confidence.
Overall, the agency claims house prices in London’s more expensive neighbourhoods increased during the final three months of 2019, the first time they have risen on a quarterly basis since 2016.
The 0.1% increase may not sound much, but indicates increasing confidence in London’s top-end properties despite 83% of Savills’ agents claiming that the ongoing Brexit battle had impacted the market and nose-diving volumes.
While prices have only inched up across the capital’s prime markets, they are a vast improvement on 2018 when prices decreased in central London by 4.2% and within its outer prime suburbs by 2.8%.
But prices in neighbourhoods such as Kensington and Mayfair remain 20% below their 2014 peak.
“In central London the highly discretionary super prime market has historically been the first to fall and the first to rise again,” says Lucian Cook (left), head of residential research at Savills.
“Prime central London prices have looked good value both in a historical and global context for some time, particularly for dollar buyers, but the recent experience at the top end of the market suggests that we are now at a turning point.
“However, 2020 will not be without its challenges as the Brexit deal is negotiated, so we are not forecasting a significant bounce in values until 2021.”