Average prices reached an all-time high in Prime Central London in the first quarter of 2017, according to London Central Portfolio (LCP), which analysed quarterly statistics from HM Land Registry.

But it said that sales reached an all-time low over the same period.

Price boost

Average property prices in the centre of the capital exceeded £1.9m at the end of quarter one, showing a 4.6% price increase. On a rolling annual basis, prices are now 5.4% higher than two years ago (Q1 2015).

In contrast, transactions remain down. Sales in the first three months of the year fell a further 21% from the end of 2016, with just 3,406 sales taking place over the last 12 months, a fall of 41% on the previous year.

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This brings volumes to their lowest level on record.

However, the higher £2m to £5m price bracket was particularly active last year, reflecting the only annual increase in sales (8.5%) in Prime Central London. This can, in part, be attributed to international homebuyers taking advantage of price discounts offered on top-end properties and beneficial currency exchange rates, said LCP.

Looking forward

Despite the Conservative Government now coming to an agreement with Northern Ireland’s DUP on a confidence and supply vote, the UK looks set to face a period of uncertainty, admitted LCP, which is unattractive to foreign buyers looking at property in Prime Central London.

However, it suggested that the fact the UK might be on course for a softer Brexit could be encouraging for institutions considering their position in The City and for international investors looking at the UK.