The real estate market in London rose slightly in March 2016

The number of transactions and volume of sales of Prime London property rose in March 2016 in comparison with the previous year and for the first time in 2016. At first glance, it seems that the price increase violates the established order of things in the market of elite real estate of London – as in the past this sector was subjected to strong pressure from the strengthening of the tax burden. According to real estate Agency Knight Frank, a small surge of sales in March is due to an increase in the tax burden in April, in connection with which the investors tried to complete the transaction prior to the entry into force of the new rules.

Annual sales growth is quite small – only 0.8% , the lowest for the last 6 years. January and February in the market of elite real estate of London was weak and the March sales growth does not negate the General trend to lower prices. The sellers recognize that the market is at its peak and a further rise in prices is impossible and in order to attract price sensitive buyers, sellers are forced to offer a discount of more than 10% .

Despite the not very optimistic overall picture, Knight Frank predicts a further fall in prices on the real estate of a class “Lux” in the Western parts of London to 2% and simultaneously increase prices by 5% on East from Mayfer and South of the Thames. The market for Prime London real estate is becoming more mixed. Areas near Hyde Park, where housing prices were highest suffered the most from the imposition of increased Stamp duty and more likely experienced a decline in prices. Areas Islington, city, Fringe, where the prices were relatively low, by contrast, has seen good growth over the past year. So, the maximum price increase of 8.2% recorded in the district of Islington, slightly behind the city Prang , showing price growth at 8.1%. Prices rose also in ROSBANK 3%, 2.9% in riverside, ZrO2,6% in Mayfer. The record for falling prices – by 6.8% were Knightsbridge , 4.9%, prices fell in the Sauce, Kensington, 3.5% – in the area of Hyde Park, at 2.5% in Chelsea, 0.8% in Notting hill and by 0.2 per cent in Belgravia.

® Helen Entree. G. 06.04.2016

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