The UK faced a snap General Election, which saw Conservative leader Theresa May lose her majority and result in a hung parliament. In order to hold the minimum number of seats required to form a government, the Conservatives have reached an agreement with the Democratic Unionist Party. The DUP will support the Conservatives on all Brexit legislation, which Brussels on June 19th, and we wait to see how negotiations unfold is now the key task ahead for the UK. Brexit talks started in. The UK has two years to leave the EU, taking us up to March 2019 as the deadline.
In terms of the UK property market, the result of the General election, has inevitably led to ongoing political uncertainty, which has taken affect since the result to leave the EU last year. Whilst political uncertainty, together with associated buying costs (tax) take their toll, there are still good opportunities for buyers. Sterling is likely to remain weak, whilst we negotiate Brexit, which we can expect to see strengthen as the UK makes progress on securing a Brexit deal with Brussells over the next 21 months.
High-end housebuilder Berkeley Group has performed very well in its key London market to push up pre-tax profits by 53%, beating expectations. On Wednesday, the FTSE 250 group reported profits (before tax) of £812.4m for the year to the end of April, saying “the housing market has stabilised in London and the southeast” since a knock resulting from the Brexit referendum. However, Berkeley Group added that “we are facing a number of headwinds and a period of prolonged uncertainty” resulting from factors including Brexit, global instability and a tougher tax regime for buy-to-let landlords.
Qataris tipped for London Property Spree
Several countries including Saudi Arabia, United Arab Emirates, Bahrain and Egypt abruptly cut off diplomatic relations with Qatar on June 5th. This included withdrawing ambassadors, and imposing trade and travel bans. Saudi Arabia and the other countries criticised Al Jazeera and Qatar’s relations with Iran, accusing Qatar of funding terror organisations. US president Donald Trump supported Saudi Arabia’s move, and a number of countries in the region have called for the crisis to be resolved through peaceful negotiations.
Qatari investors already own large swathes of London real estate and we may see further investment from the Gulf state amid the crisis. Political fall-out with Qatar’s neighbours will inevitably lead to less cross-border investment, and therefore more capital being invested elsewhere. Andrew Thomas, director and head of international capital markets at Colliers International said the crisis is “likely to trigger a further outward capital flow” and that: “we will see more Qatari money trickle into UK property as private investors mitigate against political volatility.“
It is estimated that Qatari’s own more than £1 billion of property in Mayfair in addition to London landmarks such as Harrods, The Shard and Canary Wharf.
Just Sold: Portman Square
Jaffray Estates have just sold an unmodernised two bedroom apartment in 15 Portman Square. The apartment was very rare, being one a of few available facing the front of the building with views over the garden square.
15 Portman Square is a highly sought-after purpose-built art-deco 1930’s block situated on the north side of Portman Square. The building has excellent security with 24-hour porters, and residents have access to the private Portman Square gardens, which also include a tennis court.
Should you be interested in a similar apartment or are considering selling in the area, and would like a complimentary valuation, then please don’t hesitate to get in touch with Nicholas Jaffray on 020 3091 9311 and email at: firstname.lastname@example.org
For more information regarding our current properties for sale in and around Marylebone, if you are considering selling and would like some advice telephone Nicholas Jaffray on 020 3091 9311 or email: email@example.com