Prime London property in areas such as Mayfair, Chelsea and Kensington offers opportunities for luxurious living for homeowners, and lucrative financial opportunities for investors and landlords. But to make wise decisions, whether you’re buying to live, buying to sell or buying to let, you need to know what’s going on in the market. With that in mind, here’s the latest on the prime London property market.
Prime London shows signs of rude health
According to Property Wire, the number of new buyer registrations and tenancy agreements for prime London properties have ‘soared’ since last January, with the number of new buyers standing at 24% higher than at the same time in 2015. The areas with the most activity were perhaps not where many people would expect, with outer London areas such as Bishops Park and Barnes seeing the most sale registrations.
In the lettings market though it was prime areas of central London, such as Mayfair and Chelsea, which have experienced rapid growth, with agreed tenancies rising by 91% year on year. The report however also highlights the fierce competition for prime London property at the moment, with, “13 buyers for every property in prime London at the end of last year,” and a drop in supply of 12% year on year for the last three months of 2015.
“These statistics clearly show that demand for prime London properties are as strong as ever,” commented Vanet’s director Joel Brookes. “For those prepared to sell at this point, the benefit of a competitive market of eager buyers is the ability to command a higher sale price as buyers battle each other for the best properties that London has to offer.” If you’re curious about the real value of your prime London property, send us an enquiry via our valuation page or call 0207 042 0033.
What will a ‘Brexit’ mean for the prime London property market?
Outside the property market, the biggest news of late has been the announcement of the referendum on whether Britain should leave the EU, scheduled for 23rd June. But what might the affect of a ‘Brexit’ be on prime London property matters? In terms of domestic buyers, little is likely to change, but with a high number of foreign buyers investing in London property, overseas sales may be a different story.
The International Business Times has said that the uncertainty of the current situation and its effects on the value of the pound may have an immediate effect. The publication commented that, “those already invested in London may choose to sell up rather than watch their assets lose value as sterling falls.”
The IBT also points out that EU citizens make up approximately 15% of the prime London property market, and that this is facilitated greatly by the ease with which capital flows through the European Union. “Brexit,” it says, “may cost London property its safe-haven status among Europeans, at least, as those already invested could sell up and look elsewhere in the EU, while others may be deterred from investing altogether.”
Commenting on the news of the upcoming referendum, Joel Brookes said, “clearly no one can foresee with any real accuracy what will happen in the event that Britain leaves the EU. But even if there is a decline in buyers and renters from the European Union, there is certainly no shortage of willing investors from other areas of the world such as Russia, the Middle East and Asia to help ensure the prime London property market stays steady.”
Kensington and Chelsea still top average house price lists
There may be a few less surprises in store when glancing over the latest figures from the Land Registry which reveal the most expensive boroughs for buying prime London property. The most expensive borough is still Kensington and Chelsea, with an average cost of £1.37million, while the City of Westminster is fast catching up, with average house prices reaching £1.04million. “Though growth in Kensington and Chelsea has slowed recently, these figures clearly show that the borough remains the most highly regarded area for prime London properties,” commented Paul Bartolo, Vanet’s head of Sales and Lettings.
Prime London news in brief
According to figures reported recently by CNN Money, sales of London mansions costing more than £10million have slowed considerably in the past year, dropping by a third in 2015. The report suggest that this drop may be due in part to a slowdown in purchases by Russian and Chinese buyers as a result of circumstances in their own countries rather than anything integral to the London property market.
Finally, new laws have been proposed which aim to prevent the prime London property market from being a conduit for money laundering. According to theGuardian, work by Transparency International and Global Witness has revealed that, “large chunks of London’s prime properties are now owned by trusts in tax havens such as the British Virgin Islands.” The new laws would mean that the owners of properties would have to reveal their identities, and would enable the government to seize the property if off-shore trusts fail to disclose this information.
All figures and quotes are accurate at the time of publishing