The outlook for Earl’s Court needs to be considered in the context of the wider prime London market. With an election approaching and the taxation of high value property on the political agenda we expect values across prime London to plateau for the next few months. What happens after the election depends on who gets into power and specifically whether a full blown mansion tax is introduced, abandoned or substantially toned down.

We are forecasting prices will see small falls in prime central London and plateau across the rest of the prime London market in 2015. Overall, this means committed sellers will need to be realistic on prices but there is a buying opportunity for those who are prepared to take a long term view on the prime housing market.

In Earl’s Court, regeneration will result in an additional uplift in prices, although the impact won’t be felt immediately as it typically starts once the development begins to feel like a place. This offers an opportunity for buyers as the regeneration has only just started.

The rental market

Across prime London, the strengthening economy will underpin demand for prime rental property. We expect rents to rise by 17% on average over the next five years, unless a mansion tax were to be introduced and levied on the occupier of £2m+ homes.

In Earl’s Court, 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 at times if high levels of new build stock enter the rental market. Over the long term, rental values in Earl’s Court are likely to see a similar uplift to the sales values on the back of the regeneration.