The central London property market will enjoy rapid growth over the next five years, with strong demand and a lack of supply helping to push prices up, the latest report from property consultants Cluttons has forecast.
Residential home values in the region are expected to climb by 2.5 per cent over the coming year and then to continue on this upward spiral over the medium-term.
James Hyman, partner for residential sales at property consultants Cluttons, said: "We are seeing very strong price growth as buyers compete for the limited supply of prime property available, which is driving the market to levels in excess of the 2007 peak. The looming stamp duty increase to five per cent for property over GBP 1 million is increasingly becoming a factor, especially as the transaction must go through before the April 1st deadline.”
Cluttons also predicted that there would be a shift in the type of buyer that dominates the market in the coming years, with a shift away from a reliance of foreign investors.
The return of the domestic purchaser to the prime central London property market is expected to be driven by the return of bonuses, pent-up demand from buyers and increasing confidence in the economy.