After a slower few years, Central London's prime property market is showing signs of recovery, with an increase in sales volumes.
Sales volumes in central London's prime market received a boost in the second quarter of this year, indicating a recovery following a temporary slowdown.
The proportion of sales increased by a considerable 23% for properties within the £5 million to £10 million price bracket when compared with the previous quarter.
According to a report from the London Central Portfolio (LCP), the brighter picture is in part fuelled by continued investment in central London property from overseas investors in search of a reliable 'save haven' in an increasingly unreliable world.
London's prime market has been affected by successive changes to stamp duty, in particular an additional stamp duty surcharge of 3% on the purchase of second homes. Brexit, arguably to a lesser extent, also took its toll on the property market. However, the nation's decision to leave the EU largely contributed to the fall in the value of the pound sterling which, along with low interest rates, has attracted high-end buyers and investors from overseas to the prime market.
A number of large sales and the strong performance from the sale of properties between the £5 million to £10 million price bracket is mainly due to certain factors affecting the market, including favourable interest rates.
LCP's Chief Executive Officer, Naomi Heaton, said: "This [increase in sales volumes] can be attributed to international home buyers taking advantage of notable price discounts, alongside beneficial currency exchange rates."
Though growth might be minimal, the report's findings paint a brighter picture of the prime market, and it remains one of the world's best investment destinations.
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