London Property Market Trends

This chart shows the overall performance of the London property market over time, based on our factor model. The baseline market return represents the general market trend, while the total return includes the contributions from all factors.

The correlation matrix shows how the different factors relate to each other. Strong positive correlations (closer to 1) indicate factors that tend to move together, while negative correlations (closer to -1) indicate factors that tend to move in opposite directions.

Key insights from the correlation matrix:

• Total Floor Area and Non-linear Floor Area show a strong positive correlation, as expected
• New Build Premium shows a negative correlation with Construction Period, reflecting the inherent difference between new and older properties
• Energy Score shows increasing correlation with New Build Premium in recent years, as newer properties tend to be more energy efficient

This stacked area chart shows how the relative contributions of each factor have changed over time. It helps identify which factors have become more or less important in driving London property prices during different market cycles.

This chart shows the volatility (standard deviation of returns) for each factor over the selected time period. Factors with higher volatility have experienced more significant fluctuations, while those with lower volatility have been more stable.

Understanding factor volatility can help investors assess risk and identify which property characteristics might provide more stable returns during market turbulence.

This analysis shows how each factor has performed during different market cycles (boom, bust, recovery). Understanding these patterns can help predict how different property types might perform in future market conditions.