View more on these topics

Property transactions in Prime Central London at all-time low: LCP

Transactions in Prime Central London fell to the lowest level on record, according to a new report.

London Central Portfolio today released findings of analysis, conducted in conjunction with Acadata, which found that transactions in prime central areas of the capital were down 9.5 per cent in 2017, compared to 2016, representing the lowest number of annual sales on record and a 34 per cent drop from 2013.

There were just 4,183 property transactions in Prime Central London in 20-17.

The new build sector also suffered last year the report found, with transactions falling 13.4 per cent annually and 5 per cent on a quarterly basis.

However, prices were found to have stabilised somewhat toward the end of 2017 with growth of 2.4 per cent in Q4.

London Central Portfolio chief executive Naomi Heaton says: “Prime Central London has experienced unprecedented pressures over the last few years with the introduction of new taxes targeted at the residential sector and London in particular.

“On top of this, an unsettled political backdrop and the slow progress on Brexit negotiations has further dented sentiment, resulting in a picture of price volatility and falling transactions.

“Nevertheless, there were signs towards the end of 2017 that prices were stabilising with four consecutive months of marginal price growth, culminating in Q4 growth of 2.4 per cent. This contrasts with Greater London and England & Wales which continue to see price falls.”

In Greater London, prices were found to be falling, with properties at an average of below £600,000 for the first time since 2016. Transactions dropped by 7 per cent in Q4 2017 and 10 per cent over the year.

Outside of London, prices in England and Wales were also found to be falling, down 4.7 per cent in Q4 2017, the largest quarterly drop since February 2009.

Annual transactions were also on the decline, down 2.3 percent in 2017, compared to the previous year.

The new index is based on the actual prices at which properties in England and Wales transacted, using Land Registry data.



Foxtons profits fall 65% as London market slows

Foxtons’ pre-tax profits fell 65 per cent in 2017 due to a slowdown in London property values. The firm says profits were £6.5m in 2017 compared to £18.8m in 2016. Revenue fell in 2017 fell 11 per cent to £117.6m. The listed firm’s shares fell 2 per cent when the markets opened this morning. The […]

Strong dollar can be a powerful driver of UK dividend growth in 2015

By Robin Geffen, fund manager and CEO 

This year threatens to be a challenging one for UK dividend hunters. Last year saw an all-time record amount paid out in UK dividends — some £97.4bn, according to research from Capita Dividend Monitor. Yet as Capita also pointed out, out the biggest single factor driving the growth in the fourth quarter of last year was easy to identify: the rising US dollar. 

In our view, this trend is much more than simply a one-quarter phenomenon. It is actually the most profound issue to get right as a UK equity income investor in 2015. We believe that the US dollar will continue to strengthen significantly from its current level. This is due more to the US economy’s demonstrable de-coupling from the rest of the world than to a view on the UK. The US has a strong chance of tightening monetary conditions this year without jeopardising growth or de-stabilising its housing market. The same can unfortunately not be said about the UK.


News and expert analysis straight to your inbox

Sign up