Posts with tag: prime central London property

Mayfair Sets New Record High Monthly Rent

Mayfair Sets New Record High Monthly Rent

Mayfair Sets New Record High Monthly Rent

The London property market is split between those struggling to save a £50,000 deposit for their first home and those spending more than this on their weekly rent.

Now, a property in one of central London’s most exclusive neighbourhoods has set a new record high rent price, according to Knightsbridge-based letting, management and advisory service, Tunstall Property and property data analysts, LonRes.

The house, on Brick Street in Mayfair, is being rented for over £216,000 per month, surpassing the record set last year by One Hyde Park, a luxury apartment block in Knightsbridge.

Mayfair is famous for being a property hotspot for the super-rich. With its Michelin star restaurants and designer boutiques, mansion owners are in their element.

Managing Director of Tunstall Property, Mark Tunstall, says: “Prime central London has a lot to offer and each neighbourhood has a distinct appeal to certain ultra-prime tenant groups.

“The ‘Golden Triangle’, formed by the neighbourhoods of Mayfair, Belgravia and Knightsbridge, commands the highest rents.”1


















Prime Central London House Price Growth Lowest for Five Years

There were 26% fewer homes sold for £1m or more in the prime central London market in the last 12 months.

The Land Registry data is supported by Knight Frank’s most recent prime central London sales index, which reveals that annual price growth, at 1.7%, was at its lowest level for over five years.

Without including the newest prime central London markets of Islington, Riverside, City & Fringe and Southbank, growth was at just 0.4% in the past year.

Prime Central London House Price Growth Lowest for Five Years

Prime Central London House Price Growth Lowest for Five Years

The Knight Frank report on prime central London sales in August states: “Demand was unsurprisingly restrained in August. It is typically one of the quieter months of the year, however, this seasonal trend was compounded by the fact that buyers have been coming to terms with higher Stamp Duty (for properties worth more than £1.1m) and uncertainty in global financial markets.”

The report also says that the market in August was particularly affected by China devaluing its currency, which has caused “some buyers to postpone decision-making until there is a greater sense of certainty.”

However, it adds: “On the other hand, there is evidence Chinese buyers have stepped up their interest in safe haven global property markets like London and are increasingly looking for homes in golden postcode neighbourhoods like Mayfair.”

The annual price growth of 1.7% is the lowest increase since November 2009, eight months after the market bounced back from its post-Lehman Brothers low.

But the report is optimistic: “The seasonal nature of the market dictates buyers will become more active in the autumn and a greater sense of normality will return to the market, which will also be driven by the fact vendors are lining up new properties for sale.”1

Tom Middleditch, an associate director at JLL Kensington, comments: “Pre-election weakness affected both the sales and lettings market, but this was reversed with the Conservative Party win.

“Although transactions were not quite at the euphoric levels that some agents reported in the immediate election aftermath, prime markets are now rebuilding stock levels and should find moderate activity growth in Q3.

“However, the lack of sales stock continued to push occupiers into rental property. This was particularly notable for corporates who, alongside strong demand from students, pushed up new lettings by 93% in June compared with 2014.”1 


Just 2 Places Have Slower House Price Growth than Prime London

Just two areas have seen house price growth that is slower than the drastically falling prime central London market.

The biggest property price growth in the capital is now in more affordable areas.

Luxury London homes once kept the housing market stable, with values rising by 86% since hitting a low in 2009, revealed Hometrack.

The prime central London market grew by just 1.6% in the past since months, putting it in the bottom three of the house price index.

The only areas with slower growth were Dundee at 0.1% and Sunderland at 0.7%.

Prices have dropped in the last year in some of the most exclusive postcodes of London. They fell by 7% in Knightsbridge, 1% in Chelsea and 0.8% in Kensington.

Some areas that experienced stronger growth than prime central London were Middlesbrough, Rochdale and Grimsby.

Worst areas for house price growth


House price growth in last year

Dundee 0.1%
Sunderland 0.7%
Prime central London 1.6%
Plymouth 1.7%
Telford 1.9%
Middlesbrough 2%
Blackpool 2.3%
Swansea 2.5%
Blackburn 2.6%
Rochdale 2.7%
Just 2 Places Have Slower House Price Growth than Prime London

Just 2 Places Have Slower House Price Growth than Prime London

Hometrack has identified prime central London as the most expensive international market in the capital, containing just over 100,000 or 3% of London’s homes in areas such as Chelsea, Belgravia, Knightsbridge, Mayfair, Marylebone, Hampstead and Kensington.

However, average prices in these locations are still 55% higher than they were at the 2007 peak, now at a staggering £1,044,250.

Contrastingly, all other areas in the bottom ten have experienced house price decreases since the peak.

Richard Donnell, Hometrack’s Research and Insight Director, says that tax changes, such as Stamp Duty reform, have affected the most expensive properties and put buyers off.

He continues: “Last year, George Osborne introduced some tax changes – higher levels of Stamp Duty, overseas investors have to pay Capital Gains Tax [CGT]. There were concerns about the mansion tax and sterling started to appreciate.

“There’s still overseas demand, but rather than looking like a red-hot buy, people have started to question whether it can keep going up.”

Instead, Donnell observes that growth is “coming out of the cheapest parts of London.”

He specifies: “At the moment, it’s places like Newham, Barking and Dagenham and in the commuter areas, places like Watford. They are the ones that are keeping the momentum going in our London city index.”

The new data also indicates a continued north-south divide, with all of the fastest growing areas for house prices located in the south, especially near London.

Top ten areas of house price growth



House price growth in last year

1 Luton 13.1%
2 Oxford 12.3%
3 Milton Keynes 11.4%
4 Reading 11.3%
5 Crawley 11.2%
6 Bristol 10.9%
7 Brighton 10.1%
8 London 10.1%
9 Southend-on-Sea 10%
10 Medway 9.9%

Donnell advises buyers to search for markets with growing levels of employment and earnings, “markets just outside the great M25 area, where there’s value for money in housing.”

He adds: “It’s going to continue to be your Aldershots, your Crawleys, the Medway towns – affordable and accessible markets around London will continue to increase.”1

Big cities such as Manchester, Birmingham and Leeds are experiencing increases in new jobs, which will also push up prices, says Donnell.


Prime London House Prices Rise for First Time Since Sep 2014

House prices in the prime central London market have risen slightly, by 0.8% in the second quarter (Q2) of 2015. This is the first increase since September 2014, according to the latest index.

The highest growth in the past year was experienced in Pimlico, where values rose by 5%, or £66,000, revealed the data from Marsh & Parsons estate agent.

There was also a 17% increase in demand for prime property in Q2, but supply rose by just 10%. Overall, investors made 42% of sales in this sector, an 8% annual rise.

Prime London House Prices Rise for First Time Since Sep 2014

Prime London House Prices Rise for First Time Since Sep 2014

In the same period, there was an increase in foreign buyers, which accounted for 34% of all sales, up from 30% in Q2 2014. The firm believes this is due to an influx of European buyers of all nationalities.

Prime London homes cost an average of 27% more per square foot than all London properties. The average price per square foot of property in central areas, such as Holland Park, Notting Hill or Kensington and Chelsea, is £1,516.

Contrastingly, the overall price of prime London property is £1,192 per square foot.

CEO of Marsh & Parsons, Peter Rollings, says: “The excellent capital appreciation and secure nature of property in prestigious central addresses of Kensington, Chelsea and Holland Park have long made them appealing, particularly to the investor, and it’s encouraging that we’ve seen such a rise recently.

“Investors are a good gauge of the overall health of the London market. If there was any cause for concern about the future property market, investors would be upping sticks and moving elsewhere.

“But the fact they are still putting down roots in the capital shows how fertile current conditions are. While there may not be much action to see at the moment, prices are still growing and the foundations for fruitful capital returns are strong.”

He also notes that price growth has reversed and started to improve again, with a 0.8% quarterly increase compared to a 0.6% decline in Q1 2015. Outer prime parts of London have witnessed the strongest recovery, with 1% growth.

However, house price growth in this sector is still much lower than last year. Annually, prices have dropped across the whole prime London market.

Rollings says that values should be considered over the longer term, stating that since June 2013, the price of the average prime London home has risen by 12.1%.

Regarding property type, family sized homes have experienced the greatest increase in price, with four-bedroom houses in prime London locations rising in price by 1.3% quarterly. Additionally, demand for these homes has grown, with the amount of registered buyers up 17%.

Rollings expects that London house prices will become steadier than prices in the rest of the country in the coming months, as Londoners face much higher Stamp Duty.

He adds: “There’s no denying that London has been struck by significant regulatory changes, and given it’s position at the frontline of the UK’s property market, is having to absorb the impact.”1



Wealthy London Homeowners Drop Asking Prices

Homeowners in the luxury central London market cut asking prices, as they feared a Labour government.

Almost 40% of all property types in the prime central London sector sold below their marketed value in the first quarter (Q1) of this year, as vendors unwillingly lowered their asking prices.

Gazundering has not been seen so strongly in this market since 2012, when the country was emerging from the recession. Boroughs such as Belgravia, Kensington and Chelsea, Mayfair, and Knightsbridge experienced determined buyers looking for further price cuts at the point of sale.

Wealthy London Homeowners Drop Asking Prices

Wealthy London Homeowners Drop Asking Prices

New research from Lonres on the first three months of 2015 revealed that 64% of properties that had already been reduced in asking price, dropped the value again when the vendor was close to completion.

As the outcome of the general election has been more certain than anticipated, it is believed that this market will begin to pick up again.

The study also found that 72% of estate agents in central London witnessed a rise in price cuts in Q1 2015, and the average saving for buyers on homes worth over £1m was £240,000.

Managing Director of Douglas & Gordon estate agents, Ed Mead, says: “High-end central London has been dramatically affected [by uncertainty surrounding the election]. Volumes are down over 50%.”1

Savills estate agents also discovered that price reductions and a decline in demand caused a 5.2% drop in values over the six months to the end of Q1.

Managing Director of Rokstone, Becky Fatemi, says that price cuts indicated concerns over a Labour government, but that sellers accepted that values were too high.

She comments: “The froth has come off the market.”1 

The homes experiencing price reductions sold for 88% of their original asking price, the Lonres report claimed, and properties were on the market for an average of 32 days.

Director of Lonres, Anthony Payne, explains: “The high-end property market is an emotional place. The sale price is not based on any logic but merely my house is nicer than the one down the street.

“However, we found that if you discounted your home you would sell quicker than someone who did not but would inevitably need to bring the value down to the sale level further down the line.

“Interestingly, it’s the captains of industry, who make very clear decisions in their business world, who become emotional when selling their home and take it personally.”1