Property prices in London’s most expensive neighbourhoods have increased by 1.7% since August 2014, the lowest pace of change in more than five years, according to figures from Knight Frank.
The firm’s latest prime central London sales index suggests changes to stamp duty rules in December and uncertainty caused by China’s currency devaluation caused the summer slowdown to be sharper than usual.
The annual rate of increase was the lowest since November 2009, when the market was recovering from the 2008 financial crash, and the slowdown was felt most in the parts of London that have traditionally been favoured by wealthy buyers.
In the west London neighbourhood of Notting Hill, once home to prime minister David Cameron, prices have fallen by 4.6% over the past 12 months, while in Knightsbridge they are down by 2.4%.
Across west London’s prime areas prices were down, while in the City of London they have increased by 7.1% and in Islington in north London they are up by 6.5%.
