There are tentative signs that London house prices are approaching a plateau. Boroughs that have seen the biggest price increases since the crisis now report the most subdued rates of price growth and activity. While stamp duty changes and pre-election concerns over a Mansion Tax explain part of this, increasing numbers of buyers are also being priced out. A solid economic backdrop and low mortgage rates will support the market for now. But we expect price pressures to ease considerably over the next 18 months.
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