propertytalk Live! - Central London property market attracts investment from all over the globe

propertytalk Live! - Central London property market attracts investment from all over the globe

Prime Central London estate agent, W A Ellis, reports a dramatic increase in demand on both the sales and lettings market in March, particularly from the Middle East.

In addition, there continues to be an extreme shortage of stock on both the sales and lettings markets with gazumping and best bids on prime stock.

Richard Barber, Partner, Residential Sales at W A Ellis, said:

“With the recent instability in the Middle East and the tragic crisis in Japan, London appears to be a safe haven with the added attraction of low sterling exchange rates. As such, the Central London property market is attracting investment from all over the globe. This demand for property has led to an upsurge in prices and transactions (which has also partly been fuelled by the increase in Stamp Duty Land Tax which increases by 1% on properties valued in excess of £1m on 5th April) over the last month. Indeed, we note that 25 houses in excess of £2m have been sold in the last three weeks alone within SW1, SW3, SW7 and SW10, and prices have increased by approximately 3 % since the start of the year.

“We have also witnessed a number of instances of properties going to “best bids” and in many cases, there are three or four purchasers for each property. The acute shortage of quality stock within our area of operation is becoming more apparent with agents pitching at recklessly optimistic prices to encourage reluctant vendors to the market.

“The increase in Stamp Duty Land Tax has obviously focused purchasers’ minds and Spring has effectively come early with purchasers rushing to conclude transactions prior to the 5th April deadline. This does, however, beg the question – is this activity sustainable or will demand taper off as the incentive to conclude deals disappears?