The Prime Central London (PCL) residential market has continued to witness positive signs over the past three months, despite the uncertainties caused by the Omicron variant and some investors not yet travelling to London, according to the latest LCP February Market Review.

LCP said that property values in February 2022 have now surpassed levels seen two years’ ago, albeit by a modest 0.6%. It added that the rental market has been rapidly recovering in recent months from the impact of the pandemic and that the average annual rental yield for a flat in PCL was 3.4% in February 2022.

The greater London market (excluding PCL) has outperformed the central areas of the capital over the past 24 months, with prices increasing by 9.4% since February 2020.

Andrew Weir, CEO at LCP, commented: “We have seen evidence of buyers seeking to acquire small apartments within prime addresses as many professionals return to the capital. The lack of stock remains a drag on a PCL market recovery, however we expect to see stock levels increase this spring as owners observe more ready, willing and able purchasers.”