Prices for elite real estate of London continue to decrease

Summarizing the results of the January 2015, it became clear that residential property prices in Central London continue to decline and this decline is gradually spreading to the rest of greater London. Prices for luxury properties in London are declining, primarily due to the increased amount of supply of new housing in this sector of the London property market. The second factor is the mood of uncertainty in the market of real estate in connection with the risk of introducing a “mansion tax” as a result of the elections in 2015. And of course, its role in the formation of the new prices in the market of elite real estate of London played a new scale of Stamp duty, which significantly increased the tax burden on real estate buyers expensive £937000 pounds.

The largest decrease in prices was recorded in areas such as Walworth and Southwark, where rates for the period from January 2014 to January 2015 fell by 15%. In the area of Belgravia prices fell by 10.3% over the same period, in Cromwell Road in Kensington – 8.3%. Of the 20 regions of the UK , where there was a drop in prices for residential property in 2014 – the biggest drop in prices was in 11 districts of London.

Falls and the yield investors, handing over luxury properties in Central London to rent. Many investors learned in 2014 is negative or zero yield, which is calculated as the difference between the rental yield and change in value of the property. So , in the area of Walworth marked the largest negative yield of 11.3%. In Belgravia the negative rate of return was 7.1%.

Most fell flat in Central London. Apartment prices in Central London fell by 9%, while over the same period, the number of apartments offered for sale grew by 64%. The price of a typical flat in Belgravia has fallen 20% from £1995000 to £1600000 . This effect has spread to Islington, where asking prices since March 2014 has fallen by 11%. On average each apartment is lost in a price of about £85,000.

However, in the real estate market in the UK is optimistic. The fall in prices, which is observed now in the market of elite real estate of London is the consequence of too rapid growth of prices for 2012 and 2013, after which prices return to their normal values. Other regions of the UK feel quite confident and real estate prices show a slow but steady growth.

® Maxim Savitsky 10. 02.2015 G.

 KNIGHTSBRIDGE, LONDON SW1X – £8,750,000

MONTPELIER MEWS, KNIGHTSBRIDGE SW7 – £9,500,000

THE BELVEDERE, CHELSEA HARBOUR SW10

BERNERS STREET, FITZROVIA W1T – £1,995,000HANS PLACE, KNIGHTSBRIDGE SW1X – £ 14500000

BERNERS STREET, FITZROVIA W1T – £1,995,000

FITZJAMES AVENUE, WEST KENSINGTON W14 – £ 2,300,000

IMPERIAL CRESCENT, IMPERIAL WHARF SW6 – £ 4,550,000

THE KNIGHTSBRIDGE, LONDON SW7 – £ 2,950,000

HANS COURT, HANS ROAD SW3 – £ 13,950,000