According to a recent article on The Guardian, the capital’s booming property market is predicted to “grind to a halt” next year, putting an end to nearly ten years of London outperforming the rest of the UK.
The crucial election year will see lending restrictions begin to affect London properties, whilst concerns over mansion tax at the top end of the market are likely to put off buyers and push down prices. However, property experts claim that this pause will be only temporary and that “growth will restart in 2016”.
The UK housing market (including London) will witness a 2% rise in prices next year, and despite all regions outside of the capital seeing an increase of between 1% in the north-east all the way up to 3.5% in Scotland, the surges seen in London at the beginning of 2014 will mean that further potential for growth is restricted at the moment. As a result, property prices in the capital will remain static next year, but it is predicted that the market will pick up at such a level that by the end of 2019 prices will be 10.4% higher than they are now.
Prime locations in London, in swanky areas such as Mayfair and Knightsbridge, are predicted to see their house prices fall by 0.5% next year, as buyers wait to see if a tax is to be introduced on homes costing over £2 million. However, they are also likely to “bounce back” and increase by nearly 23% by the end of 2019.
Could now be the perfect time to buy?