Following the financial crisis, the central London property market rebounded quickly, from late 2009 the market saw capital appreciation year-on-year of 10% until its peak in April 2014. However, subsequent political uncertainty, combined with a growing number of taxes on high-value property, meant average prices fell 17% from its peak until the first quarter of 2020. Prior to COVID-19 there were tentative signs the market had turned. The strong general election win for Boris Johnson, brought an end to a long period of Brexit-related uncertainty. As a result, the market saw its first quarter on quarter increase in over five years and a period of house price inflation that had been overdue, was on the horizon.

The ongoing global coronavirus pandemic stalled the growth in the Prime London sales market, but it is now showing some rapid signs of recovery. Even without significant reopening of international travel, transaction volumes in the first half of 2021 exceeded levels seen at previous peaks in 2007 and 2014. The market activity though is yet to realise significant price growth. Prices in prime central London grew by 0.3% in the year and while it wasn’t a large increase, it was the first annual rise in five years.