Pursuits

Luxury London Home Prices Seen Rising 21.5% in Next Five Years

  • Savills says values to fall 2 percent this year on tax charges
  • Home prices in other prime areas to increase 2% this year

Lincoln Plaza in London.

Photographer: Simon Dawson/Bloomberg
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Luxury-home values in London’s central neighborhoods will climb 21.5 percent over five years as global economic growth and the increasing fortunes of wealthy buyers boosts demand.

There will be a dip in values of 2 percent this year in the capital’s best locations, where average prices start at about 5 million pounds ($7.75 million), because of higher taxes, according to a report by London broker Savills Plc. In other prime areas, which are less affected by new stamp duty charges, prices are expected to rise by 2 percent this year and by 18.2 percent through 2020.