We’ve just released our latest insight into the demand for prime central London property over the £1m mark.
Our Prime Central London Property Index records the change in supply and demand for property above £1m across London’s most prestigious areas, by monitoring the total number of properties sold in comparison to those on sale.
The latest index shows that the tattered corps of PCL property demand has risen from the dead during the start of 2016, increasing by +16%, now at 13% overall. This is the highest level of property demand felt in prime central London since June of last year, with the market having cooled consistently since.
Despite the slow decline of London’s high-end market in 2015, demand property in prime central London has been resurrected in areas ahead of April’s Stamp Duty changes, which will see both foreign and domestic buyers charged an additional 3% in stamp duty tax when purchasing a second home.
For those looking for a property over the £1m mark, that’s an additional charge of at least 13% of the property’s value, with April’s impending deadline seeing many rush to secure a sale before the changes are implemented.
As a result, some pockets of prime central London have seen demand levels explode since the end of last year, with Maida Vale top of the pile in terms of change up +281%, with demand now at 16%. Primrose Hill has seen the second highest change, up +169%, closely followed by Chiswick where demand has increased +128%. At 26%, Chiswick is also the hottest spot in prime central London where property demand is concerned.
St Johns Wood (+119%), Marylebone (+55%), Knightsbridge (+48%), Fulham (+28%), Chelsea (+5%) and Belsize Park (+5%) have also enjoyed an uplift in demand since Q4 of 2015.
But it isn’t just an increase in buyer activity ahead of April’s changes. eMoov recorded that the level of stock across the major portals has more than doubled since the end of last year from 5,729 to 13,481, as savvy homeowners look to increase their property price potential, amidst the scramble to buy before April.
But it’s not all good news for homeowners across prime central London, with a number of areas continuing to remain six feet under in the coldest depths of the market. Notting Hill has fared worse so far in 2016, down -42% after a slight revival at the end of last year. Mayfair has seen the second largest drop (-36%) and, with demand at just 5%, is also the coldest spot in prime central London.
Belgravia (-16%), Holland Park (-15%), Fitzrovia (-15%), Islington (-3%) and Kensington (-1%) have also suffered a drop in property demand since Q4, 2015.
Founder and CEO of eMoov.co.uk, Russell Quirk, commented:
“It’s clear that the fast approaching increase in stamp duty tax is having an impact on London’s high end market. The prime central London market in particular, has been in decline for quite some time now, but this flurry of activity from both buyer and seller has seen demand on the up for the time being.
We expect that when April’s stamp duty changes come and go, the market will once again start to cool. But in the meantime, it’s good news for those looking to sell a £1m+ property in London’s most prestigious areas, as this increasing demand will see them obtain a better price than previously possible.”