King Sturge View:

• The slowdown that had been evident nationally has spread to the Central London market in recent months. Prime Central London (PCL) pricing fell by 1% in the year to June.
• Super-prime stock (£5m or more) saw price growth of 13% compared to a 4% fall in the rest of the market.
• We now anticipate that the PCL market will perform roughly in line with the national market in price change terms this year.
• With no improvement in financing conditions, a PCL price fall of 9% is forecast in 2008. A further fall of at least 5% is anticipated in 2009.
• More rental stock is entering the market as those who had considered selling opt instead to let their property.
• Annual rental growth was 10% by mid-2008. We forecast the rate will fall to 7-8% bythe year end.

Read the full King Sturge report below:

Prime Central London Residential Property Market 2008 PDF

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