In summary:

We are entering a prolonged phase of stagnation
The cycle of selling has extended from every five years to every eight years
This is a market based on compromise
Resetting of price expectations on behalf of the vendor is essential to sell
But there is a Eurosceptic silver lining for London

The Past: The 2015/16 Triple Whammy
It wasn’t until late 2015 and early 2016 that the impact of George Osborne’s stamp duty overhaul started to hit the £1m plus market in central London. The changes made by the former Chancellor in December 2014, hiking the transaction levy on properties worth more than £937,000, have acted as a drag on transaction volumes and therefore prices.
I have a client who wanted to move from an apartment in Marylebone to a family-sized house in Queens Park but the stamp duty amounted to £250,000. She will therefore make do with the flat. In that instance the economy has lost a sale, a purchase and HMRC has sacrificed the stamp duty. This behaviour has now been backed up by new figures from the London Central Portfolio, which show the impact of stamp duty. The data revealed the sales of luxury apartments in London have collapsed by more than 80 per cent since the spring. Property is still the safest place to put your money but only for buyers who are looking long term. Confidence is down and people are confused about which way the market is going ? there doesn?t seem to be one rule or formula for the London market going into 2017....