In the next 5 years of luxury properties in the UK will rise by 21,5%

The real estate market of London is gradually adapting to the new environment, getting used to the changes in stamp duty and inflation.

Last year’s reform of stamp duty continues to affect the residential market of Prime London property in the near-term Outlook for housing prices in London luxury will continue at a moderate pace. However, the latest report from luxury real estate company Savills shows that in the medium term the market will come back pent-up demand that will be fueled by a nice fallen prices. Fundamentally, the interest of the market is high and it remains only to wait when it will be implemented. However, Savills predicts a large scatter price trend in different areas of London.

The geography of the real estate market of London is extensive and presents from Ealing in the West to Canary Warf in East London, from Highgate in the North to Wimbledon in the South.

The most expensive real estate market in Central London, where the average price of a property is £5 million, it is Expected that next year this market will experience weak price movement, practical does not change the overall picture. The Outlook on the real estate market of Central London for the next 5 years – the price increase by 21.5% , which is justified by the growth of the world economy and the General trend of concentration of wealth in one place. Now the prices for luxury properties in Central London fell by 4.6% for the year. But before the end of the year is expected to improve and a decrease in the overall price fall for the year to 2%.

Other areas of London, where real estate prices are not so high and the impact of stamp duty not so much, saw a price increase during the year around 2%, however, in connection with the increasing complexity of mortgage lending, it is expected that in the next five years, prices for luxury properties in London outside the city centre will rise by no more than 18.2%.

The introduction of a new scale of stamp duty in the UK in December 2014 has had a decisive influence on the housing market in the UK, where there has been a strong distortion of the housing market over the last 10 years. The growth of prices for luxury properties in Central London has significantly exceeded the growth of real estate prices in other parts of the UK. New differentiated scale of Stamp duty has fixed that by reducing the tax burden for buyers of cheap real estate and increasing it for buyers of expensive, more expensive than £1 million pounds. Sudden introduction of new rules of calculation of Stamp duty has caught some players in the real estate market. According to the forecast by Savills, from one year to 18 months to take the real estate market of the London to adapt to the new economic and fiscal conditions.

After that, in London as the city with the undisputed reputation as a world financial center, again flow of world capital and the real estate market in Central London will return to sustainable long-term growing trend.

® Alice Morgan. G. 15.10.2015

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

BROMPTON ROAD, KNIGHTSBRIDGE SW3- £1950000

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

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

THE BELVEDERE, CHELSEA HARBOUR SW10