JLL Residential

Prime Central London - May 2018

The Prime Central London sales market is still adjusting to the tax regime introduced more than three years ago. Economic and political uncertainty is further muddying the waters. We believe the market is entering a new phase with some long-time owners reconsidering their Prime Central London options.

While the vast majority will remain, we expect a moderate but steady number of owners will bring their properties to market over the next 12-18 months, marking the start of this new, more active and acceptance phase for the Prime Central London sales market. The Prime Central London lettings market is beginning to stabilise following three years of rental value falls. Demand was stronger in Q1 2018 but transaction levels remain low. We expect the market to continue its realignment for the remainder of the year.

Prime Central London - May 2018

Key highlights include:

• House prices across the whole of Prime Central London increased by 0.3% during Q1 2018

• Two-three bedroom houses (typically £2-5m) have seen an uptick in price during Q1

• Submarkets of Mayfair, Chelsea and South Kensington have been firmer in Q1 than elsewhere across Prime Central London

• New phase for PCL that will see more and more properties brought to the market over the next 12-18 months

• New build lettings remains strong

• Positive rental growth recorded in Q1 signalling a turning point in the market. Mayfair, Knightsbridge and South Kensington all showing positive activity

• We expect transaction levels to increase slightly over the course of 2018. Longer term pricing is expect to nudge upwards with stable growth of 8.7% by 2022

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