The prices of new developments in the capital will stay flat next year, a forecast has suggested.
The forecast, by property services giant JLL, showed the prices of developments in the capital will begin to recover in 2019, edging up 0.5 per cent, before rising two per cent in 2020, three per cent in 2021 and four per cent in 2022.
Meanwhile, prices across the rest of the UK will grow by one per cent in 2018, before rising two per cent in 2019, while growth will reach 3.5 per cent in 2022.
The forecasts also suggested the number of housing transactions in the UK will slow to an average of 1.23m over the next five years. The number of new homes being built will rise from 200,000 next year to 215,000 by 2022, while in the capital the figure will edge up from 24,000 next year to 27,000 in 2022.
"Across Greater London, affordability will be the overriding influence," said Adam Challis, JLL's head of residential research.
"The Bank of Mum and Dad will continue to assist and UK and overseas investors will play a lesser role... as investor stamp duty and income tax changes impact on returns. But a strong economy, especially post-2019, will drive housing demand and push up prices."
Figures published this morning by Nationwide suggested UK house price growth picked up slightly in October.
- This article has been updated to reflect a correction to the figures from JLL, which originally stated London house prices will fall by three per cent next year, but corrected the figures to show Central London development prices will remain flat.