Why increased demand for property in London cheaper than £2 million?

On the real estate market of Central London has been a very definite upward trend in favor of real estate in the low price range of this sector.

The luxury market in London is experiencing the impact of a rate hike stamp duty for properties more expensive than £2 million in addition, investors , falling below the threshold of £2 million, hedge their risks in case will be introduced so-called mansion tax, which will also affect the real estate more expensive than £2 million

The number of transactions in the residential sector cheaper than £2 million rose by 49% over 2013 to the addresses corresponding to the indexes SW3, SW7, SW10 and W8. At the same time, in the range of £5 million to £7 million the number of transactions dropped sharply .

The rental market of elite real estate of London is subject to seasonal fluctuations . At the end of last year, significantly increased the number of properties placed on the market as a response to increased demand. Currently, the offer exceeds the demand, however, it is expected that closer to the summer demand will increase as summer, usually comes a lot of foreigners renting a luxury housing. In April 2014, we expect a surge in demand for rentals due to the number of foreigners coming for seasonal work. According to forecasts, high demand for rental will be observed until Oct. The demand for rental residential property in London is also due to the high growth of prices in the market of sale. This is primarily due to the fact that Londoners, for the first time buying a house, unable to keep up with the rising prices and can’t raise money even for a down payment for mortgage lending.

It should be noted that to achieve success in successfully renting real estate, you must correctly to present it.

For example, an Unfurnished apartment may be on the market to several months, without interest to the tenants. Therefore, owners are required to rent the furniture and sell the apartment with furniture. On average, furnished apartment with a good presentation are on the market no more than two or three weeks and then successfully find tenants.

On the market for houses remains a shortage of real estate . In connection with great demand for houses, a lot of talk in the run-up to elections in 2015 on the proposed introduction of mansion tax, which could have a significant impact on the market .

® Maxim Savitsky G. on 03/03/2014

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