Knight Frank slash their prediction
- November 9, 2015
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Knight Frank agency has slashed its forecast for next year’s price increase
from 4.5% to just 2.0% for the prime central London area.
Global head of research at the agency Liam Bailey says “The prime London
property market has faced a number of headwinds in 2015, which reduced
annual price growth from 5.0% at the end of last year to 1.3% in
September [this year]”.
Other agencies have suggested London’s market is slowing, but Knight
Frank blames the stamp duty changes that were introduced in December,
Bailey says “a factor that will continue to weigh on transactions and price
growth into 2016 as the market absorbs the new rates”.
Global economic uncertainty centered around China has also reduced
demand, but Bailey thinks that although the UK’s economic recovery,
employment growth in London and the possibility of continued low
interest rates will keep price growth in the black.