What's Shaping the London Property Market?
There are two things that British people love to talk about: the weather and the property market.
July 3, 2014 (Newswire.com) - There are plenty of so-called experts forecasting what might happen in the property market, and it seems every week brings a new house price index.
Leading Central London estates agents say many of the media comments and coverage takes a national view. Andrew Ellinas, the Managing Director at Primrose Hill estate agents Sandfords, says much of what is reported is not applicable to London buyers now or in the future: "Headline-grabbing statistics are generally national averages and even those that reflect what is going on in London can be misleading. Houses for sale in Primrose Hill and the surrounding NW1 areas are in a microclimate of their own, and their buyers are not always affected by the current economic climate."
If you are looking for property for sale in Primrose Hill and would like a more accurate summary of the current and future property market, it's wise to register with estate agents Sandfords. Their local knowledge, past transaction database and current client list will form the best barometer of the prime London market available. For now, Central London estate agents give a snapshot of what might affect the London property market over the coming months.
The Budget effect: stamp duty changes
How property is bought and occupied in Primrose Hill and other prime London areas may change thanks to the Chancellor's stamp duty revision. It is not uncommon for flats and houses for sale in Primrose Hill to be bought through a company structure, and purchases of this ilk worth over £2 million were subjected to a 15% stamp duty tax rate. Mr Osborne dropped that value to just £500,000 in March 2014. The Chancellor was also aware that many company-bought properties were left vacant, despite selling for millions of pounds. Therefore, he has made properties purchased through a business and then rented out exempt from this new measure in a bid to bring more vacant homes to the rental market. Ellinas comments: "While we expect wealthy and international buyer to continue to purchase property for sale in Primrose Hill, despite the lower 15% stamp duty threshold, we look forward to an influx of houses to rent in NW1 as there is always a strong demand."
Political unrest: London as a safe haven
Prime London property has long provided a safe haven for investors but the rise in political unrest is further fuelling the property microclimate in Central London. Houses for sale in Primrose Hill and across North West London provide excellent bricks and mortar investment opportunities, with money from Russia and the Ukraine flooding in, hot on the heels of investment purchases from China, the Middle East and South Asia. In fact, a University of Oxford paper called 'Home Away from Home? Safe Haven Effects and London House Prices' details 'a direct correlation between house price changes in particular areas of London, and economic and political risks in different parts of the world'.
Economic recovery - London's business renaissance
PwC's April predictions for 2015 and beyond chart an increase in Gross Domestic Product (GDP) and a decrease in inflation for the United Kingdom. These most recent statistics show a strengthening economic picture, which is backed by a recovering commercial property sector in London. "Interest in office, industrial and retail space in London is increasing, and this is a vital sign that home-grown and international companies are investing in the capital for long-term prospects. The by-product of a regenerated business sector is a healthy Central London property market. Sandfords estate agents predict an increase in enquiries for property for sale in Primrose Hill and across Central London. "Whether its international professionals brought to London on contracts, companies relocating to the capital for its favourable trading climate or current residents able to move up the property ladder thanks to better prosperity, we anticipate all Primrose Hill estate agents will be busy moving into 2015 and beyond," concludes Ellinas.