Stamp duty increase fuels 16% surge in Prime Central London propery prices

Stamp duty increase fuels 16% surge in Prime Central London propery prices

The latest data from online estate agent, eMoov, has in their own words, "revealed that the tattered corpse of PCL property demand has risen from the dead during the start of 2016", increasing by +16%, now at 13% overall.

This is the highest level of property demand felt in prime central London since June of last year, with the market having cooled consistently since.

Despite the slow decline of London’s high-end market in 2015, demand property in prime central London has been resurrected in areas ahead of April’s Stamp Duty changes, which will see both foreign and domestic buyers charged an additional 3% in stamp duty tax when purchasing a second home.

For those looking for a property over the £1m mark, that’s an additional charge of at least 13% of the property’s value, with April’s impending deadline seeing many rush to secure a sale before the changes are implemented.

As a result, some pockets of prime central London have seen demand levels explode since the end of last year, with Maida Vale top of the pile in terms of change up +281%, with demand now at 16%. Primrose Hill has seen the second highest change, up +169%, closely followed by Chiswick where demand has increased +128%. At 26%, Chiswick is also the hottest spot in prime central London where property demand is concerned.

St Johns Wood (+119%), Marylebone (+55%), Knightsbridge (+48%), Fulham (+28%), Chelsea (+5%) and Belsize Park (+5%) have also enjoyed an uplift in demand since Q4 of 2015.

But it isn’t just an increase in buyer activity ahead of April’s changes. eMoov recorded that the level of stock across the major portals has more than doubled since the end of last year from 5,729 to 13,481, as savvy homeowners look to increase their property price potential, amidst the scramble to buy before April.

But it’s not all good news for homeowners across prime central London, with a number of areas continuing to remain six feet under in the coldest depths of the market. Notting Hill has fared worse so far in 2016, down -42% after a slight revival at the end of last year. Mayfair has seen the second largest drop (-36%) and, with demand at just 5%, is also the coldest spot in prime central London.

Belgravia (-16%), Holland Park (-15%), Fitzrovia (-15%), Islington (-3%) and Kensington (-1%) have also suffered a drop in property demand since Q4, 2015.


Russell Quirk, founder and CEO of eMoov.co.uk, commented: “It’s clear that the fast approaching increase in stamp duty tax is having an impact on London’s high-end market. The prime central London market in particular has been in decline for quite some time now, but this flurry of activity from both buyer and seller has seen demand on the up for the time being.

We expect that when April’s stamp duty changes come and go, the market will once again start to cool. But in the meantime, it’s good news for those looking to sell a £1m+ property in London’s most prestigious areas, as this increasing demand will see them obtain a better price than previously possible.”

Prime Central London Hotspots

Rank

Area

Demand (%)

1st

Chiswick

26%

2nd

Islington

24%

3rd

Belsize Park

20%

4th

Maida Vale

16%

5th

Fulham

15%

6th

Notting Hill

15%

7th

Primrose Hill

14%

8th

Marylebone

13%

9th

Knightsbridge

12%

10th

Holland Park

11%

11th

Chelsea

10%

12th

Kensington

9%

13th

Belgravia

8%

14th

St Johns Wood

7%

15th

Fitzrovia

7%

16th

Mayfair

5%

            Average

13%

 

Prime Central London Demand Change

Area

Demand Change (%)

Maida Vale

+281%

Primrose Hill

+169%

Chiswick

+128%

St Johns Wood

+119%

Marylebone

+55%

Knightsbridge

+48%

Fulham

+28%

Chelsea

+5%

Belsize Park

+5%

Kensington

-1%

Islington

-3%

Fitzrovia

-15%

Holland Park

-15%

Belgravia

-16%

Mayfair

-36%

Notting Hill

-42%

Average

+16%

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Latest Comments

AbbieP.
AbbieP. 22 Jul 2016

"While house prices in the most expensive eleven boroughs have declined values in the cheapest eleven boroughs continue to rise" - not a nice way to even out the price range. London is overrated as it

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AbbieP.
AbbieP. 21 Jul 2016

And try to profit from your decisions, I may add

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CommercialTrust
CommercialTrust 19 Jul 2016

Retirement investment has always been one of the biggest draws of buy to let. And the buy-to-let demographic is, on balance, older. (Over a third of our applicants are over 50 at the time of application.) It...

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Forrest Wheatey
Forrest Wheatey 11 Jul 2016

I find the time perfect for ever home-owner wannabe. Prices should slowly, but steadily drop, at least for the inner buyer. Making it harder for outsiders to buy properties (the whole Brexit thing means...

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property guru
property guru 11 Jul 2016

Why should Ajay even have to be looking for it. It should be public knowledge. Why is not just publish each years and to were it is and be AUDITED. Accountability.

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property guru
property guru 11 Jul 2016

Surprise suprise

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CommercialTrust
CommercialTrust 30 Jun 2016

This is great news for buyers and investors in a period of significant uncertainty. The 10-year buy-to-let fix at 3.99% in particular is excellent, a clear 100 bps ahead of the nearest competition. Though...

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Lee
Lee 30 Jun 2016

Let's see what happens to north-east property prices when Nissan announce they're leaving.

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DmitriKara
DmitriKara 29 Jun 2016

I just read another article about eviction rising and this was exactly what was on my mind, Housing has become "cat and mouse"...

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DmitriKara
DmitriKara 29 Jun 2016

I am really not surprised. I've seen one too many impudent tenants and in my humble opinion renters have one too many privileges and options to abuse heir landlord in so many ways...

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DmitriKara
DmitriKara 29 Jun 2016

There is still so much uncertainty and I will surely step back and see what's happening before I could make any decisions on my end.

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ChristinaReedUK
ChristinaReedUK 20 Jun 2016

I don't understand why it's always a war between the two sides. Either, way the landlord is probably keeping a detailed inventory and will see the changes you've made. I just don't understand why there...

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