Luxury properties in London will increase in price by 22.7 percent

Prices for luxury properties in London has grown on average by 2.6% in 2014. For the first time since the financial crisis of 2008, prices for elite real estate elite regional real estate market surpassed the prices in the capital grew by 3.2%.

Company elite property UK Savills in its report on the UK property market in 2014 has divided the year into two halves. In the first half of last year prices for elite housing in London rose by 4.9%. And in the second half of 2014, prices fell by 2.2%.

According to the authoritative opinion of Savills, the increase in Stamp duty for the upper sector of the market, which was announced in the fall, put pressure on buyers. In the end, luxury properties in the price range in the region of £2.6 million have experienced falling prices in the second half of the year at 2.6%.

However, the real estate market of the London in the price range up to £1 million and range from £1 million to £2 million, feels confident, as a negative effect from the change in Stamp duty starts with the sum of £935000 pounds, and the so-called “mansion tax”, which could be introduced in 2015, will affect the real estate more expensive than £2 million pounds.

Real estate is cheaper £1 million has risen in 2014 by 6%, and property from £1 million to £2 million has risen by 2.5% over the same period.

A record decline in prices has osutils for properties in the price range of around £4 million, as it was here osutils the maximum effect of increasing Stamp duty. For the last quarter of 2014, the price of this property fell 4.2%, leading to annual price fall of 1.3%. The market needs some time to adjust to the new rates of Stamp duty. There are already some signs that some of the load from the increase in Stamp duty will assume the seller reducing the asking price of the property.

There is a high demand in the rental market of elite real estate of London. In General, it reflects processes of recovery in economy and improvement in the labor market. For the first time after crisis of 2008, rental rates began to rise. Particularly noticeable was the growth of prices for luxury real estate in Central London is 3.5% and in the Central part of Canary Wharf, where prices increased by 5%.

In 2015, the elite real estate market of London will be looking for balance and , according to forecasts Sevills, prices could fall by 0.5%. In the next five years, assuming no new taxes, worsening the real estate market, you can expect the price increase to 22.7%.

In the rental market of elite real estate of London will dominate positive sentiments and, despite the influx of labor force and improvements in the economy, the rental market could see price growth in the next 5 years at the level of 17.1% in London and 15.9% in adjacent to the London area.

® Helen Entree. 08.01.2015 G.

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 KNIGHTSBRIDGE, LONDON SW7 – £ 2,950,000

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

ONE HYDE PARK, 100 KNIGHTSBRIDGE SW1X – £5,600,000

ALBERT COURT, PRINCE CONSORT ROAD SW7 – £3,950,000

THE TOWER, ONE ST GEORGE WHARF SW8 – £3,995,000