The six month long winter may have taken its toll on our emotions but the cold weather did nothing to cool the relentless appetite for prime London property. The first half of this year has seen a surge in transaction levels, helped by clarity on the tax regime imposed on properties held in company (or ‘non-natural’) structures which seems much less onerous than initially feared.
However, the 7% stamp duty, charged on purchases over £2m, has created something of a ‘black-hole’ in transaction levels at the price point most acutely affected – between £2m and £2.5m. This has become a very real problem for those trying to sell in this price bracket and is yet another example of how unfair and clumsy the levy of stamp duty is.
We have witnessed a burgeoning demand for family apartments in mansion blocks, particularly in Kensington and have achieved some incredible prices, especially on a handful of ‘off-market’ sales. We have also experienced a continued boom in families migrating to North Kensington and Queens Park, where prices are fast catching up with parts of Notting Hill. Our W10 office, now in its second year and in a prominent position in the St Quintin Conservation Area, is awash with motivated buyers and tenants.
With prices reported to be 29% higher than the pre-credit crunch peak in 2007 there is no evidence to suggest that the market will do anything other than grow and grow. Our advice is clear, if you’re considering buying; the longer you wait the more it will cost you.
Director – Head of Sales, Mountgrange Heritage
Posted: 3 May 2013