More woe for Prime Central London as agent slashes price forecast

The latest blow to the prime central London market has come from Knight Frank, the high end agency, which has slashed its prediction for next year's price increase from 4.5 per cent to just 2.0 per cent.

“The prime London property market has faced a number of headwinds in 2015, which reduced annual price growth from 5.0 per cent at the end of last year to 1.3 per cent in September [this year]" explains Liam Bailey, global head of research at the agency.

In line with other agencies that have suggested London's market is slowing, Knight Frank blames the stamp duty change introduced last December - "a factor that will continue to weigh on transactions and price growth into 2016 as the market absorbs the new rates" says Bailey. 

He says global economic uncertainty centred on China has also dampened demand, although the UK's economic recovery, employment growth in London and the likelihood of continued low interest rates will at least keep price growth in the black, he says. 

Last week Knight Frank announced that its 65 equity partners and 8,000 staff would share from the proceeds of a 19 per cent rise in the firm's pre-tax profits, which rose to £162m.

Sales shows a 13 per cent increase to £443.1m in the year ending March 31 - but it was Knight Frank's commercial arm that was credited with contributing the most to the firm's bumper year.

Originally posted here.

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