The demand for luxury property in London grew by 16%

The market of elite real estate of London is experiencing the dual impact of recent changes in tax policy. Market sales significantly a significant decline in demand, which is reflected in the prices, forcing sellers to make concessions. The rental market of elite real estate of London, in contrast, is under the pressure of demand due to the lack of offers and the rental rates began to rise.

For example, take the purchase of housing costing £15 million the Buyer of such property, by law, must pay £1.7 million pounds of Stamp duty. The cost of renting a mansion or a penthouse in Central London from £5000 pounds a week, that is, the buyer within three years of the lease will cover the amount of the Stamp duty.

If we take into account the high maintenance costs of the owner, it becomes clear that the purchase of this mansion makes sense only if the buyer has a long term goal. General political and economic uncertainty, which takes place in the United Kingdom, adds concern to potential buyers, and they make their choice in favor of renting.

According to the company elite real estate Knight Frank, the number of transactions in the rental market in September in London has increased by 16% and the number of hits by 6% over the same period.

Meanwhile, it would be a mistake to assume that the tenants impose less stringent requirements for real estate. The requirements are very high, especially with regard to reliability and functionality. Thus, the most demanding tenants are suitable to the equipment of bathrooms and kitchens, which should be done by the brands of the “top sheets”. Not coincidentally, the greatest demand in such a situation, enjoys the luxury real estate London, first intended for market sale. The fact that the apartments, equipped with modern, technologically advanced equipment, not find a buyer and get on the rental market, indicating a high degree of uncertainty that is present now on the market. Thus, the market of private rent a luxury property in London is competition to the hotels. For example, the hotel room class “luxury” costs £5000 per night, and in the apartment you will be able a week to live at the same means, that is to the same as 7 times cheaper! Of course, life in the hotel includes additional facilities, but most importantly, the tenant always has a choice.

® Helen Entree. 03.11.2016 G.

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