Cluttons’ Q4 2014 residential investment monitor for London has been released.
This quarter saw a marginal decline in capital values across Prime Central London. Despite this, annual growth for 2014 stands at almost 10%.
Affordability constraints and market uncertainty have driven decision making over recent months.
Changes to the Stamp Duty Land Tax regime must also be absorbed before the market moves forward.
This uncertainty, which is likely to stretch until the election, and possibly beyond depending on the outcome, has provided an additional buoy to the rental market.
Rents have risen by 6% this year and we expected deferred home buying and jobs growth to maintain demand into 2015.