Leading online estate agent eMoov.co.uk forecasted the decline of the prime central London property market throughout 2014, as highlighted in their quarterly Property Hotspots data. The data identified the shortcomings of the prime central London market and the drop in demand for properties in Zone 1 and 2 in particular.
The amplified price of property in the heart of the capital, coupled with the changes in stamp duty tax and the potential of a mansion tax if Labour win the election in May, have resulted in a decline in demand for property priced £2m+ in central London’s most desirable post codes.
Now eMoov.co.uk have further confirmed their prior research by analysing the demand for property with a price tag of £2m+, across 17 of London’s most prestigious neighbourhoods. They have found that demand, the percentage of properties sold v’s listed, in prime central London has slumped to an average of just 11.2%.
The top 5 worst affected areas were St James’s (0%), Marylebone (6.4%), Primrose Hill (6.5%), Maida Vale (6.7%) and Fitzrovia (9.1%).
With much of prime central London already in serious trouble, the impending threat of a potential mansion tax should see this falling demand continue, at least until the result of the general election is decided.
Founder and CEO Russell Quirk commented “It’s clear that prime central London has been devastated where the property market is concerned. For a while now certain areas have seemed impervious to changes in the property market elsewhere in the country. However it is apparent that this is no longer the case as the capital has been brought to its knees.
I think a combination of the change in stamp duty, the potential threat of mansion tax and even to some extent the current situation in Russia, are all contributing to an instability in the prime central London property market.
We believe that by Q2 or Q3 this will be confirmed when the likes of Halifax, Nationwide and Hometrack release their latest house price indices. We also predict demand will remain low until the election is over. If labour don’t win then it will offer slight comfort to those looking to buy in these areas and without the fear of a mansion tax we could see demand regain some stability, but that is yet to be seen.”