House prices in prime central London could double in the next five years.

The post-election effect is being forecast by agents Douglas & Gordon, which says that the result is “a very bullish outcome” for the London market at all price levels.

It says that prices of £2m-plus properties are set to rise by up to 20% in the next year. These were the homes that were due to have been hit by mansion tax had Labour won.

The firm says that the Tory win will restore overseas investor confidence in the UK.

Douglas & Gordon are also very upbeat about the longer-term effect, saying it will take Labour a decade to re-group.

It says: “An important point to note is that investors will be able to invest in the London residential property market with a ten-year horizon.”

The forecast is here