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

Spencer Fortag
Spencer Fortag 25 Aug 2016

The funny thing is, I mentioned the brick issue in my blog back in April: http://medwayproperty.blogspot.co.uk/2016/04/the-medway-property-market-and-lack-of.html

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SecomTech
SecomTech 19 Aug 2016

Firstly, I either lodge with DPS or do not take a deposit...secondly, If a tenant has not received a confirmation their deposit is secured with either a scheme or in an insured account with an agent/landlord,...

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jasonevans
jasonevans 19 Aug 2016

Belvoir has over 15 years of experience in property lettings, buying and renting and is one of the best agencies I know about. I have heard that they revived an award for the hard work. Really amazing...

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jasonevans
jasonevans 19 Aug 2016

Usually these areas are least affected when it comes to unexpected economical collapse.

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TheWaspNestRemover
TheWaspNestRemover 11 Aug 2016

You agree to pay for the treatment needed to get rid of fleas, ants, mice, wasps nests and other pests unless you can prove that these are a result of us not meeting our repairing responsibilities or these...

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madisonwelch80
madisonwelch80 02 Aug 2016

16% is quite a raise. Let's hope this tendency won't continue for long.

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madisonwelch80
madisonwelch80 02 Aug 2016

?66,963 is a serious price drop However buying a property it a serious investment only small percentage of the UK population could afford.

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madisonwelch80
madisonwelch80 02 Aug 2016

Wow, it kind of surprised me. I mean counting on mom and dad's bank even after retirement is too much. That's the moment in life when one should have ensured themselves. I am shocked.

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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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