The 2015 election means the taxation of high value properties is back on the political agenda.

We expect values to plateau or possibly see small falls in locations with a high concentration of properties over £2 million, as both overseas and domestic buyers remain cautious.

Sellers should price for a London market that looks fully valued both in domestic and international terms.

While the prime markets outside of London are more buoyant, headlines of house price growth can give sellers a false impression of the value of their property. This creates a gap between their expectations and those of the buyers who are sensitive to headlines about interest rate rises.

Assuming there are no further changes to the taxation of high value property, our outlook for the prime markets remains positive. We expect the suburbs and commuter locations to see the strongest growth as homeowners continue to make the move out of the capital.

Click Table 3.2 below to enlarge

Taken from
Residential Property Focus Q3 2014