As we settle in to 2018, many people will be wondering what the year holds for the London Property Market. We asked David Adams, Director at our Mayfair Office, for his thoughts.
In 2018 the London market will continue to see strong demand from overseas buyers taking advantage of currency weaknesses, mainly driven by the Middle East because of its US backed currency. Interestingly we are seeing some European buyers purchasing homes from Central London to Nine Elms, on the other side of the river, who are looking to get ahead of Brexit on the basis that anyone who owns or has residency here will be in a better position to stay. This could also be the reason for the return of Russian purchasers who are resuming searches in Knightsbridge, Kensington, Mayfair and St John's Wood.
Central London prices have declined some 20% since the December 2014 Osborne stamp duty reforms, as a direct result of those restructurings. This means overseas purchasers are advantaged by the 20% price decline, in addition to a 15% currency fall that we have seen since the referendum. Historically, it is not often in London one can buy prime property at 35% below peak.
Whilst the number of properties on the market for sale will remain limited, properties are going under offer at the right price and it is essential for vendors to have realistically valued homes and not according to asking prices for properties which have been sitting unsold after a year on the market.
Towards the end of 2017 our new London lettings division saw lots of enquiries for properties to let and we expect interest to continue to grow in prime and super-prime lets across the capital, bringing a new set of international renters to the market. There are many new potential residents looking around who want to try out an area first by renting, before making a serious long-term commitment.
If you would like more information, or are interested in how we can help you, contact us today.