Despite a lot of bluff and bluster from a number of high street estate agents at the top end of the market, demand for property in prime central London (PCL) has drastically declined according to research by eMoov.co.uk. The threat of Mansion Tax disappeared alongside Labour’s political clout. So demand for property over £2m in London’s most prestigious boroughs, fell by 3% overall since the start of May.
Demand in more than 60% of the PCL market is still falling, with St Johns Wood the worst affected dropping by -37% in a month. Amongst the other boroughs worst affected are Mayfair (-29%), Belgravia (-23%), Notting Hill (-21%), Chiswick (-20%), Knightsbridge (-15%), Chelsea (-10%), Fulham (-9%), Islington (-4%) and Kensington (-3%).
Some areas of the PCL market have seen demand increase, most notably Primrose Hill where demand has increased by 264% over the course of a month. Other areas that have benefitted since the election are Fitzrovia (+93%), Belsize Park (+26%), Maida Vale (+12%), Marylebone (+8%) and Holland Park (+6%).
Outside the PCL market, Ealing has witnessed the largest fall in the last three months, with demand plummeting by -36%. Brent and Hounslow also fell by -4%.
Founder and CEO of
eMoov, Russell Quirk: “I don’t think the threat of a Mansion Tax disappearing has done much in the way of restoring the market. People just aren’t buying throughout a lot of London, let alone the £2m+ market and many boroughs have seen a decline.
I don’t think that many that will shed a tear for the well-heeled, sharp suited Mayfair type property predators. They have long crawled along the golden streets of prime central London, yet it seems that the tide has turned with volumes of stock collapsing and high end businesses teetering on the brink of financial ruin.
Given the colossal fall in demand, it could be several years before the PCL market recovers. Probably even longer before this demand drives prices back to the grossly inflated heights of 2013/14.
However, the UK property market as a whole seems to have experienced a post-election bounce. With demand up +9% nationally, people are clearly more confident about buying now that the next five years of government has been decided.
It’s interesting to see the demand for commuter zone property continuing to grow. With London demand falling, owners wanting to see an increase in their property price, might want to sell up and head a few miles out of the capital. “
