Samir Salya on prime London property market’s continued success

With issues such as Brexit and previous stamp duty changes affecting interest, the London property market has slowed in recent months. But despite these concerns, property in prime areas of London have continued to show strength. With locations including Notting Hill, Chelsea, Knightsbridge and Marylebone, prime central London is seeing sales and price recovery.

Prices Rising

Residential data and analytics firm, LonRes, has produced a report that suggests some hope for future sellers in this market.

Compared to 2016, the figures show a 1 per cent fall in prices in their annual figures for 2017. However, the third quarter of 2017 also saw a 4 per cent rise on the previous quarter. With these figures on the rise, there is hope for a market recovery in prime central London.

In addition to these figures, discount on initial asking price also fell, down from 9.1 per cent to 8.5 per cent on an annual basis.

Prime London real estate

The number of properties sold in prime central London between January and September 2017 saw a 3 per cent rise on the same time period of 2016. However, the third quarter is also down 1 per cent on 2016’s figures. The LonRes prime London letting index also indicated a 1 per cent rise in values in the third quarter. The prime fringe market saw rents increase by 2.5% quarter on quarter and 1.8% year on year.

While these figures do still show a degree of unstableness to the market, its rising figures are promising and look to show a recovery of the area. There is still demand for high-quality properties in popular and prime locations.

The future of London

The increase in prices in these areas suggest a steadying of the market. Increasing house prices in these areas suggesting a continued interest in the capital.

Naomi Heaton, Chief Executive Officer of London Central Portfolio, suggests that this stabilization of the property market is reassuring, in her comments to Property Wire.

Heaton states: “The mainstream buy to let sector in prime central London has experienced unusual volatility over the last two years, suffering from a number of tax changes aimed at cooling the sector. After a price fall immediately following the change to a graduated system, prices fell again in 2016 when the Additional Rate Stamp Duty (ARSD) for second properties came into effect.”

“Despite this, we have now seen signs of recovery as buyers absorb the additional cost of investing into a world class, safe haven asset class. Brexit jitters also appear to be calming down as global political and economic uncertainty makes the UK an attractive place to invest in once more.”

Heaton concluded by commenting: “Prices in the mainstream sector, now edging upwards again, are outperforming the general market in England and Wales which has shown growth of 7.1% since 2014’s tax changes. Growth in England and Wales is likely to see a slow down over the rest of the year if the domestic economy falters.”

About Samir Salya

Samir Salya is the Chairman of Reign Holdings, and is involved in UK and UAE real estate and construction. Samir holds over 20 years’ experience in executive management, business expansion, performance improvement, sales and marketing.