Prices in prime central London began to edge up during the first quarter of 2018, according to a report Friday from property consultants JLL.
Prices increased 0.3% during the first three months of the year, the first quarterly rise logged for a year. In the 12 months to the end of quarter one, though, average prices were down 0.6%, the report said.
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The prime central London sales market has been "impacted by punitive tax regimes, economic and political uncertainty," the report said, with higher rates of stamp duty—especially on properties purchased above £3 million (US$3.9 million)—being a particular hurdle for the market, JLL said.
That impact is likely to be felt for the rest of the year, at least, but JLL predicts that by 2022, prices will rise 8.7% in prime central London.
"Buyers and vendors are slowly adjusting their mindsets, but with Brexit, the prospect of a Labour government and other unknown unknowns, the market is yet to settle," said Richard Barber, director at JLL, in the report.
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"This said, people are accepting the new dynamics and accepting the new ‘rules.’ Prices have risen ever so slightly, which will give more confidence to the market to both sell and buy," Mr. Barber added.
The properties that saw price gains in the first quarter were two to three bedroom houses, typically in the £2 million (US$2.6 million) to £5 million (US$6.6 million) price range, the report said. Prices in the submarkets of Mayfair, Chelsea and South Kensington have been stronger in the first quarter than elsewhere across prime central London.