Parliamentary elections in may 2015 will have a significant impact on the real estate market

The mood of buyers and sellers in the real estate market of the London most likely, will remain at a low level up to the parliamentary elections to be held in may 2015.

The mood of uncertainty are primarily associated with the risk of introducing a “mansion tax”, increasing Bank interest rates and the introduction of a “tax on capital gains” for non-residents.

Moreover, the pessimism of the real estate market and adds to the tightening of mortgage rules, bringing them closer to European standards by 2016 , which will force lenders to be more careful.

Indeed, according to information from unofficial sources, even very wealthy customers are experiencing difficulties when applying for mortgages, despite the fact that in respect of borrowers with incomes above £300,000 or the buyer of real estate is more expensive £3 million, many creditors greatly simplified.

The UK economy is on the rise. It is expected that in 2014 economic growth in the UK will be among the best in Europe and show a growth rate of 2.6% per year. The development of inflationary processes depends on many factors, including energy prices and the General level of consumption. However, it is possible that in 2015 we will see the process of deflation.

On the market there are still pockets of active infusion of capital by foreign investors. First and foremost, this estate in new buildings of the middle segment cost cheaper £937500 pounds, which is already reduced Stamp duty and the risk of introducing a “mansion tax” is excluded.

UK real estate continues to experience increased interest from investors from the troubled countries of Europe, but also from historically associated with the Kingdom of the Middle East countries covered by geopolitical conflicts, such as Egypt, Nigeria and other West African countries. Moreover, gaining the growth process of pension savings invested in property in London as private investors and various pension funds.

Of course, the election results will have a significant impact on the real estate market of London. Before the election is not expected rising prices, and expected even, their slight decline. After the election, if the conservatives win, the London real estate market will grow again the rest of the year. Otherwise, if they win the labour party, the market expects a decline in prices under the influence of “mansion tax” and other unpopular measures. In case of a victory of the Conservative party, is expected to increase prices in the second half of 2015 to 3.5%. In the case of the victory of the labour party , the market would stagnate at best until 2016.

® Maxim Savitsky . 18.02. 2015

KNIGHTSBRIDGE, LONDON SW1X – £8,750,000

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

THE BELVEDERE, CHELSEA HARBOUR SW10

HANS PLACE, KNIGHTSBRIDGE SW1X – £ 14500000

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

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

KENSINGTON SQUARE, KENSINGTON W8 – £ 7,000,000

SLOANE STREET, KNIGHTSBRIDGE SW1X – £ 12,950,000