The last two months have seen a surge in demand and higher sales volumes as sellers proved more willing to absorb the additional costs of stamp duty and buyers moved to beat the surcharge deadline in April 2016. Nevertheless, turnover remains relatively low, with sales over £2 million down 21% in October 2015.
For the high net worth individuals looking to relocate to London, Golden Venn recommends that they initially consider renting while the market settles since the saving on up-front acquisition costs will off-set the cost of rent. Stamp duty on £10m+ properties is equivalent to over three years in rent.
Buyers remain cautious and Golden Venn believes that prime central London and the more prime markets of Westminster and Kensington and Chelsea in particular, will see further price decreases albeit moderate, once the April 2016 deadline has passed. Looking ahead, London’s safe haven credentials remain sound in the face of global economic uncertainty, falling oil prices – which causes nervousness amongst private wealth in the GCC region – a slow down in China and faltering stock markets indicate that before long, we can expect a renewed spark of activity.
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