What are values doing in the village of Notting Hill and Kensington this winter of 2014? Well, to give some background, 2013 was an unprecedented year for prime London property with double digit price rises recorded in most areas. It was a classic case of demand outstripping supply as swathes of buyers scrambled for limited stock. We expect price growth to be less dramatic in 2014 as more properties come to the market ahead of anticipated tightening of planning and tax policies.
Potential amendments in planning policy regarding basement excavation is likely to encourage homeowners to obtain planning consent before the policy changes; giving them the option to sell their houses with planning consent in place. Additionally, George Osborne’s proposed changes in capital gains tax on overseas sellers could spur these vendors on to sell before the new tax comes into force. Any increase in interest rates is likely to be modest and we feel this will only have a marginal impact on the cash-rich prime central London market.
While prime central prices may increase at a slower rate, our North Kensington and Bayswater offices saw tremendous prices rises in 2013, which we expect to continue. The success of the prime markets in 2013 has caused a ripple effect in Kensal Rise and Queens Park, and even as far out as Harlesden. In these areas, vendors are frequently selling properties 5-10% ahead of guide price.
Director – Head of Sales, Mountgrange Heritage
7 January 2014