The outlook for Westminster and Pimlico needs to be considered in the context of the wider prime London market. In the lead up to the election property prices across prime London saw small falls due to the uncertainty in the market and the stamp duty changes announced in the 2014 Autumn Statement.

However, following the Conservative Party general election victory, we are beginning to see the start of the deferred demand from the pre-election period flow back into the prime housing market, particularly given that the spectre of a mansion tax is now removed.

While this positive sentiment is likely to translate into an increase in transaction numbers, we expect the impact on house price growth to be slower, as it will take time for the high levels of available stock that have built up during a long period of pre-election caution to be absorbed.

The regeneration in Victoria is likely to result in an additional uplift in prices in the surrounding areas of Westminster and we expect this to cause a ripple effect further into Pimlico. This offers an opportunity for buyers as the regeneration is not expected to finish for another three to five years.

The rental market

Across prime London, the strengthening economy will underpin demand for prime rental property. We expect rents to rise by 17.1% on average over the next five years. In Westminster and Pimlico, the number of private renters is already high and it is well placed to attract more investment from both traditional and institutional investors.

However, this might put rental values under pressure if high levels of new build stock enter the rental market in the short term. Over the long term, rental values are likely to see a similar uplift to the sales values on the back of the regeneration.