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There were 620 transactions in the third quarter and a total of
3,696 in the year to the end of September, one of the lowest
levels to be recorded for the city center's mix of million-pound
apartments and mansions, the London Central Portfolio (LCP)
said.
Uncertainty before and after the June 23 referendum and an
increase in the amount of stamp duty paid on the purchase of
second-homes and buy-to-let properties from April both hit
demand in a market popular among domestic and foreign investors.
"The past 12 months not only witnessed a marked slowdown in
sales activity as Stamp Duty changes dramatically affected
sentiment, but uncertainty has been a recurring theme, both
before and following the UK’s Brexit vote," LCP said.
Transactions fell by an annual 24 percent in the year to the end
of September, but prices remained stable, down by just 0.5
percent, according to Land Registry data examined by LCP.
Estate agents Savills <SVS.L> does not expect prices to rise
again until 2019 but the uncertainty around Donald Trump's
presidency and upcoming French elections could boost demand for
London property, often seen as a safe haven in times of flux.
"After a year of constrained activity and increased uncertainty
both in the USA and elsewhere in the EU, investors will actively
re-enter the market," said LCP's CEO Naomi Heaton.
"LCP expect steady but muted price growth for 2017."
(Reporting by Costas Pitas; editing by Stephen Addison)
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