There is seemingly no end in sight for rising London property prices as UK estate agent’s Savills forecast they will rise a further 25% in the next five years.
According to Savills’ predictions released yesterday, London prices will soar ahead to 2017, while the rest of the UK will only grow by 10%.
Prime central London locations have already seen their prices grow by 53% since 2009, while ultra-prime properties have gone up by 58.4%.
The next 12 months however will be slow ones, Savills predicts. It blames incoming government regulations and rising property taxes for a dampening of demand, especially from overseas buyers who have helped sustain demand in the last few years.
“After such strong growth, we now expect prices to playeau in 2013,” says Savills’ Yolande Barnes. “Increased taxation, increasing the stamp-duty levy, strengthening sterling and a weakened global economic outlook could all provide catalysts for a slowdown.
“But the fundamentals in London remain strong so we expect that growth will resume in 2014,” he added.