In the first edition since the General Election, Douglas and Gordon’s quarterly Emerging Prime Index for London showed that property prices showed a small rise of 1.3%. However, compared to the same period last year prices were down slightly by 0.84%.

Demand in South West London continued to be driven by sales – mainly flats - below the £937,500 threshold, following changes to stamp duty in the Chancellor’s Autumn Statement. By contrast, larger houses priced above £1.3m in emerging prime were muted, compounded by the stamp duty issues and mortgage market concerns. In some areas – such as Battersea and Battersea Park – some prices were down 10% year on year.

Clapham and Southfields led price increases in emerging prime in Q2 2015, up 3.5% and 3.9% respectively. A weaker second half in 2014 means that for these areas prices have caught up to where they were 12 months ago. 

The firm reports: ‘Rental growth was also strong, up 1.7% in the quarter, continuing the areas robust performance during a difficult year in the sales market. This growth is expected to slow once the sales market picks up. Overall, total returns (capital + rental growth) remain attractive for professional investors in emerging prime and capital values are expected to climb 10% in the next 12 months.’