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Is the Worst Over in Prime Central London?

Updated: Aug 18, 2022

They say a picture paints a thousand words and when it comes to Prime Central London, the old adage doesn't disappoint. In the chart below Ludgrove has overlaid the LonRes Prime Central London price index with the relevant political and fiscal events of the last 5 years. Since 2014 the sector has faced a barrage of attacks including multiple increases in stamp duty, the removal of tax relief on mortgage interest for Buy to Let investors, the threat of Labour's Mansion Tax, restrictions on high value mortgages from the Mortgage Market Review, two General Elections and Brexit. Unsurprisingly this has resulted in a significant (-14%) decline in capital values over the 5 year period.

Politics and prime Central London

The question we ask ourselves at Ludgrove is can it really get any worse from here, especially as politicians seem to have already thrown the proverbial "kitchen sink"? Anything of course is possible however the UK already has some of the highest rates of property taxes in the World and there appears to be little appetite within the Conservative Party to raise property taxes further (indeed some are calling for them to be reduced). National and London transactions are suffering steep falls in 2018 as it seems taxes at the top end are gumming-up property chains, leading to a dysfunctional market further down. Sure a Corbyn led Labour Government would usher in further unwelcome attacks, but absent this we expect a bottoming out of Prime Central London capital values in 2018 and 2019.

Fraser Slater

Ludgrove Property

43 Berkeley Square


London W1J 5AP

Tel: 0207 889 2860



Disclaimer: Ludgrove Property Limited is not authorised or regulated by the Financial Conduct Authority (FCA) and we do not provide any financial or investment advice.  We recommend that any property investor seeks appropriate professional advice before entering into any contract, and we would also advise that the value of any investment can go down as well as up and that you might not get back what you put in. You may have difficulty selling a property investment at a reasonable price and in some circumstances it might be difficult to sell at any price. We would urge you not to invest unless you have carefully thought about whether you can afford it and whether it is right for you, and if necessary to consult with a professional advisor in accordance with the Financial Services and Markets Act 2000. All information is provided strictly as a guide only, is subject to change without prior notice and does not constitute an offer of investment. This website should not be regarded as an offer or solicitation to conduct investment business, as defined by the Financial Services and Markets Act 2000. Investors who are resident in or citizens of countries other than the United Kingdom may be subject to local restrictions. In particular, no offer or invitation is made to any US persons (being residents of the United States of America or partnerships or corporations organised under the laws of the United States of America or any state, territory or possession thereof), who are excluded from the services offered in this site. The information on this website has been obtained from sources which we believe to be reliable and accurate, but without further investigation this cannot be warranted.

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