Latest research shows that property values in the prime London residential market are bottoming out and finding their level as the rate of decline has notably slowed in the first quarter of 2017. Prices across all prime London reportedly fell by 0.3% in Q1 this year, compared to 2.2% in Q1 last year. This places values 6.1% below the market peak of 2014. The £10m plus market is also showing signs of recovery; values fell by 0.8% over Q1, which is considerably less than the 4.8% decline seen in the previous 6 months.
Many have cited the decline from November 2014 to be a result of stamp duty changes, which interestingly have risen on 13 separate occasions since Tony Blair’s changes in 1997. Arguably it is the most contributing factor, however, it is also worth considering other factors such as capital gains tax and inheritance tax, both of which affect international buyers taking advantage of the weaker sterling. Brexit has followed the mentioned tax changes creating uncertainty, however, now Article 50 has been triggered we can expect to see more confidence return to the market.
Pricing is more sensitive than before and part of the increase in transaction volumes are related to price reductions. Adjusted pricing from vendors has improved sentiment and buyers are seeing value and returning to the market.
The UK Prime Minister Theresa May has called a General Election on 8th June 2017, which is 3 years earlier than scheduled. The official reason for doing so is to strengthen her hand in Brexit negotiations, due to opposition from Labour, the SNP and the Lib Dems. Theresa May’s party currently has a big lead over Labour, and will be hoping the election will see her getting a bigger majority in the House of Commons.
Whilst the election is only 5 weeks away, history tells us that we can expect to see a dip in transactions up until 8th June. However, in this instance, with only 7 weeks between announcing the election and the ballot date compared to the usual 6 months we can expect the 8th June to have less of an impact.
After the election, we can expect to see a bounce back in the number of sales, which are typically higher in the 3 months immediately after. One could argue that the decision to hold a General Election is positive news due to the short time scale with no long build up. The new Government will bring certainty and with that one would expect confidence.
Chiltern Court NW1
Chiltern Court is an imposing portland stone mansion block located on the corner of Baker Street and Marylebone Road. The building was originally designed as the headquarters for The Metropolitan Railway Company and a luxury hotel. The apartments were designed by architect Charles Walter Clark and completed in 1929.
The building is has been home to a number of interesting residents, including most famous of all writer H.G. Wells, who lived and worked at Chiltern Court between 1930 and 1936. Author Arnold Bennett lived and worked in the building between 1930 and 1931, both writer’s blue plaques (actually brown) can be found on the exterior wall by the main entrance. Other notable residents, include Eric Coates, who lived here in the 1930’s and created some of the best-known and loved pieces of English light orchestra music. Also, composer Gustav Holst’s name can be found on a blue plaque. Holst was most famous for The Planets amongst many other works across a range of genres.
Jaffray Estates are currently marketing 3 apartments for sale in Chiltern Court, all of which have been meticulously reconfigured and refurbished to provide opulent central London living. We have a 2 bedroom for apartment for £1,850,000, a 4 bedroom for £2,750,000 and a 3 bedroom, boasting 7 south facing windows at the front of the building with views down Baker Street, for £2,950,000 (OIEO). Full details can be found via our listings page here: Property For Sale or by clicking the links below.