The number of homes on sale for more than £1 million in London has risen to a record high as buyers walk away from “vanity” asking prices. There were 19,243 houses and flats on the market with a seven-figure-plus price tag in early June, up from 18,844 a year previously, according to analysis from property portal Rightmove. With prices static or falling across most of London, the increase appears to be down to a growing backlog of expensive homes failing to sell in a tough buyers’ market. Expensive properties have been harder to sell, often taking twice as long as before, and that is still after a couple of price reductions to get the pricing to a level where it is going to move. The latest Land Registry figures show that just 213 homes changed hands for more than £1 million in April, the last month for which figures are available, down 14% on the previous April and one of the lowest monthly totals for several years. The rate of sales suggests it would take seven and a half years for all the £1 million properties to find a buyer. Buyers have been deterred by fears of taking on huge debt when the market is seen to be falling from all-time highs and the uncertain economic climate in the run-up to Brexit.
In a Reuters survey of 30 housing market specialists, taken in the past few weeks, predicted home prices will rise on average 1.7% nationally this year – much slower than the predicted 2.5% increase in consumer prices. In London, where foreign investors have fuelled skyrocketing prices, they will fall a modest 1% this year. If realized, it would mark the first annual decline for nearly a decade – after the global financial crisis hit. Sterling is down around 10% against the dollar since Britain voted nearly two years ago to leave the European Union, making properties cheaper for overseas investors but generating prolonged ambiguity over the divorce talks that has made buyers wary. With still little clarity on how post-Brexit Britain will operate, demand in the capital will decrease over the next year, 15 of 26 respondents to an extra question said. 10 said it would stay the same and one said it would increase. The most common reason cited was Britain’s decision to leave the European Union, which is due to take effect at the end of March next year. Other reasons given included changes to house sale and mortgage taxes.
“There is evidence to suggest that the phasing out of mortgage tax relief for buy-to-let owners has hammered the market. This will let some much needed air out of the market, particularly in London and the south east,” said Peter Dixon, an economist at Commerzbank.
The Bank of England has followed an ultra-easy monetary policy road since the financial crisis and while it is expected to raise interest rates in August, they will remain at historically rock-bottom levels, making borrowing cheap.
In this somewhat difficult market, Jaffray Estates are providing as much value as possible to our clients, setting us apart from our competitors. In terms of advertising, for example, our client’s properties are shown on all 4 major property portals: Rightmove, PrimeLocation, Zoopla and On The Market – something very few estate agents offer. Secondly, we take out advertising in print and media: currently with The Marylebone Journal for our Marylebone clients which is already starting to show results. Of course, in a tough market this is not enough, we continue to network with an extensive number of property finders and international representatives and contacts, built over the past 10 years in the residential property market, ensuring our clients properties are in front of the right audience, as soon as they become available.
Latest Instructions For Sale
As we enter Q3, we have had a significant increase in activity over the past couple of weeks with a number of new instructions coming to the market.
Chiltern Court, Baker Street, Marylebone, NW1
An interior designed 4 bedroom, 3 bathroom (2 en-suite) apartment that has been reconfigured and refurbished to an exceptional standard in a secure 24-hour portered mansion building on Baker Street, next to Regent’s Park.
Asking price: £2,650,000Full Details Available Here
One Seymour Street, Marylebone, W1
A stunning brand new interior designed 2 bedroom 2 bathroom 4th floor apartment (with lift) in a boutique new development with 24-hour concierge and secure parking, situated on Seymour Street next to Portman Square. This the first and currently only re-sale in the development, early offers highly recommended. Sole agents.
Asking price: £2,595,000 on a 125 years leaseFull Details Available Here
99 Baker Street, Marylebone, W1
A newly designed 2 bedroom 2 bathroom apartment situated on the 3rd floor in a new development on Baker Street. The property has quiet westerly views and the benefit of comfort cooling, porterage and lift. Would make an ideal pied a Terre
Asking price: £1,680,000 on a 993 years leaseFull Details Available Here
Keybridge Lofts, Nine Elms, SW8
One of the best 3 bedroom 3 bathroom (en-suite) apartments for sale in this exclusive new development; situated on the 6th floor, includes swimming pool, gym, parking, 24-hour concierge. Ideally located next to the new US Embassy, Vauxhall Station and the River Thames.
Asking price: £1,525,000 on a 999 years leaseFull Details Available Here
Wigmore Court, Wigmore Street, Marylebone, W1
A neat and bright south facing 2 bedroom apartment situate don the 2nd floor of a small purpose-built building with a lift and porter. A must for anyone looking for the ultimate central location next to Marylebone High Street, world renowned Selfridges department store and Bond Street Station. Early viewing highly recommended.
Asking price: £995,000 on a 66 year leaseFull Details Available Here
If you are due to arrive in London soon, do get in touch with Nicholas Jaffray directly, on 020 3475 1745 or email at: firstname.lastname@example.org, should you wish to discuss your current requirements.