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property

Hotting up for Summer Tom Gladwin, managing director at Parkheath, predicts a summer surge as post-election confidence heats up the London property market

T

he London property market is already warming up for a busy summer as the clouds of pre-election uncertainty disperse. Just hours after the election result was announced, the Parkheath offices were reporting a surge of enquiries. A week later and the number of buyers registering is still rising. We have seen an increase in properties agreed and more homes have already come on to the market. This post-election activity is to some extent a typical trend, but this time I believe it will be robust and with us for the foreseeable future. Pre-election, London homeowners were facing the uncertainty of mansion tax and rent controls and have been cautiously sitting on the fence awaiting the result. Now that those concerns have been laid to rest and a majority government has been elected, homebuyer confidence in the north and north-west London market is returning, making it stronger than ever. Prices, however, seem unlikely to soar. Instead, we should expect a steadier yearly increase of seven or eight per cent. What buyers and sellers should also look forward to is a far more fluid market. Unshackled by the threat of mansion taxes and rent controls, I expect to see a greater number of transactions as the market begins to unclog itself. As supply increases, demand is also set to rise, but I doubt we will experience the drought of properties seen in recent months.

No longer haunted by the spectre of increased business and personal taxes, London will see companies attract talent and expertise from around the world Whereas many areas of the property market will be revived by the end of the election period, another has already been enjoying a steady increase in activity. Throughout this year the demand has been increasing for properties above £7m-£8m. We believe this is due to sellers becoming more realistic about values, or perhaps wealthy buyers seeing an opportunity to buy high-end properties when comparative values are low. Either way, I expect that we will see this activity ripple through to the market below and further increase the number of properties available.

London continues to be highly desirable. A centre for world finance and commerce no longer haunted by the spectre of increased business and personal taxes will see companies attract talent and expertise from around the world. This influx of highly skilled and highly paid individuals will further drive the property market. Those here on short-term contracts require high quality homes to rent and those who choose London for their permanent home often wish to purchase their own piece of this amazing city. ‘Non-doms’, many of whom had been preparing to leave the country due to proposed increases in taxation, are now staying put. So, although the number of properties for sale is likely to increase, those people buying their own homes, or buying investments to satiate the increasing rental demand, will ensure that demand is kept high. I suspect that while Mr Cameron is enjoying a honeymoon period of independent governance, the London property market will also enjoy a year of growth and activity. n

parkheath.com

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Vantage Magazine June 2015  

Welcome to the June edition of The Vantage magazine, celebrating the dynamism of the area and bringing you the latest features, articles and...

Vantage Magazine June 2015  

Welcome to the June edition of The Vantage magazine, celebrating the dynamism of the area and bringing you the latest features, articles and...

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