House price growth across London seemed to freeze in the third quarter of 2015, with average values remaining stable. This is a huge contrast to the outer boroughs such as Croydon and Woolwich, which have experienced growth of up to 12% over the last 12 months (Zoopla).
The prime market did grow, but only marginally, with average prices across all prime markets rising by just 0.7% (Savills Autumn Report 2015). Those who invested in property in the prime West market saw the greatest performance, with a value increase averaging 4.8% in boroughs such as Ealing, Chiswick and Hammersmith.
Interesting and predictably, the markets subject to lower stamp duty charges saw stronger growth than properties valued over £2 million. Homes valued up to £1 million, which are currently subject to lower stamp duty charges, have risen by 3% year on year.
Looking forward, experts predict that the market will heat up, and by 2020 to have experienced a total growth of 21% in London. Trends that investors should look out fore include changing demographics, land scarcity and the importance of creating a low carbon economy. These are the most critical in terms of sustainability for the real estate sector.