Luxury property in London will rise another 20 % in the coming years

Today there are two main factors that affect the real estate market of London. First, the concern of market participants about the possible increase in the Bank of England interest rates, and the second is the possible introduction of a “mansion tax”, which will primarily affect the real estate market of Central London. These expectations reflect the decline in interest in the luxury real estate market from foreign investors, which is already 4 months in a row. Unprecedented demand that was observed on the market in the spring of 2014 gave way to a leisurely wait. The sellers are in no hurry to reduce prices in the market and are waiting for the upcoming may 2015 elections, which will decide the tax fate of the housing market, and buyers in no hurry to spend money, waiting for lower prices. After several boom years, the market of elite real estate of London finally came realism.

For foreign investors significant deterrent to investment in the economy of the United Kingdom is strengthening the pound against other currencies over the last year.

However, according to the report of the company W. A. Ellis, prices for Prime Central London in 2015 will show growth, but growth will be modest at 1.5 percent . A more positive forecast for luxury properties outside of Central London, where we expect growth of 4% for 2015. The first violin in the growth of prices will play the third phase of the ambitious project Battersea Power Station, which now is in high interest of investors.

After 2015, when the political situation in the United Kingdom is normalized and there will be clarity on tax Outlook, expected annual standard rate at 5% , which will allow in 2019 to about 20% of the capital gains.

Perfect situation for homeowners in the rental market of elite real estate of London. The market is growing steadily, which is 43% more objects were commissioned in the sector in rent in the third quarter of 2014, compared with the second quarter. The demand for rental is growing and the number available for rental objects falling. Especially there is a shortage of real estate at more than £2000 a week. The greatest selection of tenants in the property sector ranging from £1000 to £2000 pounds, where in the market, there are a lot of new housing.

Competition among tenants in the rental market of luxury properties in Central London reflects the optimism and has led to growth of rent rates by 5% since the beginning of 2014.

® Helen Antre on 14.11.2014 g.

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