Latest London Property News: July 2020
Market Update
The London property market appears to be steadily picking up amid the easing of the lockdown, seeing increasing demand with steady transactions and rents, especially after the government announced the relaxation of lockdown measures on May 28. As at June 15, a month after the market lockdown had been lifted, record levels of offers had been accepted, with the ratio between asking prices and achieved prices narrowing as traction returned to the market. Savills data analysis shows the number of £1 million-plus sales in London last week were up 40% on June last year, with £2 million-plus sales up 10%. The luxury homes market was taking off before covid with the decisive trouncing of Labour in the General Election – the so-called “Boris bounce”. But that was put on ice with covid and has now led to huge pent up demand as the desire to get on with life trumped fears over the economy. The market prices are still below levels of 2014, so there is still value even though prices only fell about 1% during the lockdown.
Not only are we experiencing pent up demand from the recent (and current) covid crisis, but demand has been slowed since 2015, to include: the EU Referendum, 2 General Elections, and 3 property tax changes! We remain cautiously optimistic that we are returning to a strong residential property market in central London over the next few years.
Stamp Duty Holiday
The chancellor has announced a temporary holiday on stamp duty on the first £500,000 of all property sales in England and Northern Ireland.
The level at which the tax is charged has been temporarily raised until next March to £500,000 to boost the property market and help buyers struggling because of the coronavirus crisis. The changes have come in with immediate effect.
In England and Northern Ireland stamp duty is paid on land or property sold for £125,000 or more. However, first-time buyers pay no tax up to £300,000 and 5% on any portion between £300,000 and £500,000.For people who have bought a home before, stamp duty rates are 2% on £125,001-£250,000, 5% on £250,001-£925,000, 10% on £925,001-£1.5m, and 12% on any value above £1.5m. That means someone spending £248,000 – the average cost of a house – would currently pay £2,460 in stamp duty to move home. Landlords pay an extra 3% of stamp duty when they purchase a buy-to-let property in England and Northern Ireland.
The government has increased the lower stamp duty threshold to £500,000 for property sales in England and Northern Ireland. That means any property purchases below the new level will not need to pay stamp duty as long as the deal is completed before 31 March 2021. People buying sec-ond homes and buy-to-let properties will also benefit, but will still have to pay the 3% extra duty due on the entire price.
With low interest rates, this move further cements this period of time as an opportune moment to transact in the UK property market.
Sold: Cumberland Mansions, George Street, Marylebone, W1H
Jaffray Estates are thrilled to have recently completed on the sale of this stunning 5 bedroom apartment, guided at £4,250,000. The property had been carefully re-configured to provide a modern standard of living in a newly refurbished red brick mansion block in Marylebone.
We provided solicitors to the purchaser, who managed a speedy exchange of contracts, securing the deal prior to lockdown in March, and finally completing in June once the lockdown had been lifted! A great result for everyone involved.
New Instructions:
North Gate, Prince Albert Road, St John’s Wood, NW8 | £2,999,000
An excellent 3 bedroom apartment situated on the 6th floor of a prestigious building in St John’s Wood, with direct views of Regent’s Park. This property has been beautifully updated to offer a modern standard of living; and includes off street parking, 24 hour porterage and is ideally located a stone’s throw from St John’s Wood High street, making this a highly desirable property.
Baker Street, Marylebone, W1U | £1,250,000 & £1,595,000
Very excited to be selling not 1, but 3 flats in this hugely popular building on Baker Street, situated moments from everything – excellent for a rental investment or a pied-a-terre. The apartments are situated to the rear of the building, offering quiet living with and a west facing aspect providing plenty of natural light.
99 Baker Street is a small modern block of only 19 apartments, built just 9 years ago. Residents benefit from all modern conveniences, a porter, and a 990 years lease.
The 1 Bedroom flats are located on the 2nd and 6th floors, priced at £1,250,000 each, and the 2 bedroom apartment is situated on the 3rd floor, and is asking £1,595,000.
Full Details Here
Portman Square, Marylebone, W1H | £1,395,000
An exemplary 1 bedroom apartment, designed by renowned interior designers 1.61 London. This property has been completely overhauled to provide a ‘best in class’ standard of living, down to every last detail. Situated on the 6th floor in a beautiful Art Deco block, the apartment enjoys far reaching views and an abundance of natural light.
Full Details Here