Posts with tag: prime London property market

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


















Asian Investors Abandon London Property Market

Battersea has been considered the hub of London’s property boom, but are the high-rise developments beginning to crash down?

The brokers and investors driving the redevelopment of the South London ex-power station and the surrounding Nine Elms area could be ready to abandon their property investment hopes and dreams.

One of the major stakeholders in the regeneration of the 42-acre Battersea site, Sime Darby, reported a “softening of interest” in buyers from Malaysia and other parts of south-east Asia, who have previously been responsible for the huge amounts of spending that saw the area named Singapore on Thames. The Malaysia-based firm insists that none of its existing sales agreements have been cancelled.

However, one estate agent has recorded a 10% decline in the value of luxury homes in Battersea and its nearby areas in the year to June.

Experts have blamed this on the strengthening of the pound in the last few months and the economic instability in the home markets of foreign investors.

Russian buyers are some of those that have been badly affected, as the rouble has dropped by 55% due to sanctions imposed after Moscow’s takeover of Crimea.

Knight Frank estate agents says that Russian purchases of prime London properties have decreased to 2.9% of the total in the first half of the year, compared to 6.7% in the previous six months.

Investors from Singapore more than halved to 1.4% and Chinese buyers fell to 9.4% from 10.9%.

Sime Darby – which owns 40% of the Battersea project – released a statement that reads: “We are witnessing softening of interest among buyers from Malaysia and south-east Asian regions, probably due to the prevailing volatile currencies and uncertainty in economic outlook. No exchanged contracts have been cancelled to date.”1

Nine Elms, home to the new American embassy as part of its £2 billion redevelopment, has been called the “greatest transformational story at the heart of the world’s greatest city”1. The project has helped fuel the luxury property boom, while less well-off Londoners struggle to get onto the property ladder and essential workers face a huge lack of affordable homes.

Last month, the area launched its latest development, the Aykon Tower. This is the capital’s first apartment building to be decorated by Versace, including a gold-mosaicked swimming pool.

Its Dubai-based developer insists there has been strong interest in the 50-storey block.

Last month, it was suggested that the Nine Elms area is experiencing “flat flipping”, where developers are pushing to sell 18,000 new homes over the next ten years, as investors who paid a 10-20% deposit on their un-built property sell the homes, due to fears that Asian investors purchased flats as currency speculation and prices will fall as they try to make huge returns.

A property expert says that London is no longer a haven for foreign investors seeking high yields and that investing in the capital is “risky”1.

Former professor of economic geography at the London School of Economics, Paul Cheshire, states: “Conditions in financial markets and such low interest rates have converted property and especially top-end housing into an investment asset – yields are so low on such a wide range of assets.

“Given the very inelastic supply of housing in Britain in general and in London in particular, there is a lot of risk in housing in England and the top end in London in particular.”1 

As economists forecast a fall in the price of prime central London homes of 10-15%, some argue that reality is starting to hit the capital.

Online estate agent eMoov reports a 3% decrease in demand for housing worth £2m or more in May. Since May, demand has fallen in 60% of prime London boroughs, such as the City of Westminster and Kensington and Chelsea.

Founder of eMoov, Russell Quirk, comments: “I don’t think that there are many who will shed a tear for the well-heeled, sharp-suited Mayfair type property predators. They have long crawled along the golden streets of prime central London, yet it seems that the tide has turned.

“London has been a Monaco in the middle of Britain. But what comes up must come down and we are now starting to see a rebalancing with other parts of the country.”1

It is also unknown whether the market will cool further due to the Government’s plans to crack down on the dirty money being laundered in London’s property market.

Last month, Transparency International reported that offshore companies own over 36,000 London homes in jurisdictions that hide the identity of their owners, including around 9.3% in the City of Westminster.

These figures caused Prime Minister David Cameron to make a statement saying that properties in London “are being bought by people overseas through anonymous shell companies, some with plundered or laundered cash.”1 

He vows to publish a new Land Registry report that lists foreign companies and the land they own in the UK.


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



Fringe prime London property values increase

Published On: July 8, 2015 at 9:12 am


Categories: Property News

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A recent report from a leading real estate firm suggests that the fringe areas of the prime London property market are to lead the growth in property values.


The quarterly review from Douglas and Gordon indicates prime property prices in upcoming locations of the capital rose by 1.3% during the second period of 2015. However, prices were found to be down slightly on the same period one year ago.[1]

Demand for homes in South West London was again driven by sales, in particularly of flats, valued below the £937,500 mark. This followed changes to stamp duty at the turn of the year. In comparison, homes valued at over £1.3m in emerging prime markets were subdued as a result of stamp duty changes and mortgage concerns. Areas such as Battersea and Battersea Park recorded dips of 10% year on year.[1]

Clapham and Southfields were the regions with the most growth in property values, recording rises of 3.5% and 3.9% respectively. Rental prices were also good, showing a rise of 1.7% in the last three months.[1]

Fringe prime London property values increase

Fringe prime London property values increase

Taking time

‘Whereas there is some evidence of a post-election bounce, unsurprisingly many are taking their time to make decisions and a continuation of the anticipated bounce needs to be tempered with a dose of realism,’ commented Ed Mead, Chief Executive of Douglas and Gordon.[1]

Mead went on to predict that the market would remain solid due to the lack of mansion tax. However, he warns that fringe areas were likely to perform better than prime London locations as buyers search for more affordable homes.




Prime London property prices up…and down

Published On: July 7, 2015 at 4:33 pm


Categories: Property News

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The latest analysis from real estate firm Savills has provided good news for London’s prime housing market, revealing that property values rose by 1.6% in the three months to the end of June. However, further investigation suggests that levels are still down 0.7% from last year.


An increase in stamp duty rates and stock levels remaining unsold led to values becoming restricted following May’s general election. In addition, the report suggests that caution amongst buyers at the top end of the market is also high, with net price growth rising by just 0.3% for the capital’s prime central market. House prices in this market were also found to be 4.3% down year-on-year.[1]

‘The stamp duty increases introduced in December 2014 mean they now also looked fully taxed, despite mansion tax fears being confined to history,’ commented Lucian Cook, head of UK residential research at Savills.[1]

Cook seems to have a point, with homes worth in excess of £2m across the rest of the prime London market seeing values dip by an average of 0.9% over the past twelve months. More positively, prices rose by 2.4% in the three months to June.[1]

Prime London property prices up...and down

Prime London property prices up…and down


‘In the early part of the year we could put buyer reluctance to commit down to political uncertainty pre-election,’ Cook continued. ‘Only now is the dual effect of taxation at the top end of the prime market and mortgage regulation at entry level becoming clear.’[1]

Cook went on to note that, ‘these constraints are keenly felt by buyers, while some sellers are clinging to expectations that values can keep on rising. That has created a gap in price expectations in parts of the market which is likely to hold back any recovery in transaction levels.’[1]

‘With those transactions having been suppressed prior to the election, it seems inevitable that high value sales will have peaked, at least in the short term, in 2014. That means current constraints on the market could have a negative on impact on stamp duty receipts from most expensive housing upon which the Treasury has become increasing reliant,’ he concluded.[1]