Even though the prime housing market is usually pretty steady, Savills, the estate agents, say that prices haven’t really budged lately. Why? Because everyone’s been a bit nervous about the general election.

Frances McDonald, from Savills, reckons that some rich buyers are holding back, waiting to see who’s in charge before splashing their cash. After all, a change of government could mean different taxes and things like that.

But don’t think that means there are no posh houses being bought and sold. McDonald says things will probably liven up once the election has finished.

Central London vs. the Rest

So, what about London? Well, prices in the very heart of the city, where all the high-end shops and restaurants are, have actually dropped a bit – by 0.4% in the last three months. That might not sound like much, but it means if your house is worth £5 million, it’s lost about £20,000!

One reason for this dip is that some wealthy foreigners who live here, called “non-doms,” are having to pay more tax. Some might decide to move, but McDonald reckons most will probably stay put.

Meanwhile, in other prime parts of London, prices have basically stayed the same. That’s because there are still plenty of families wanting to live in those areas, and there aren’t that many houses for sale.

What About the Rest of the Country?

Outside of London, prime houses in cities have held their value better than prime houses in the countryside. It seems that after being stuck at home during the pandemic, people still want to be near shops, restaurants, and things to do.

What Does the Future Hold?

It’s hard to say for sure what will happen to house prices. The election, interest rates, and even what happens with private school fees could all have an impact. One thing’s for sure, though, it’s always an interesting time to be buying or selling a house, especially a prime one!

How prices have changed:

London

Area	Change in the last 3 months	Change in the last year
Prime Central London	-0.4%	-0.9%
Other Prime Parts of London	0.1%	-0.1%

The Rest of the Country

Area	Change in the last 3 months	Change in the last year
Prime Parts of Cities	-0.5%	-3.1%
Prime Villages and Countryside	-0.9%	-3.6%