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Election Outcome Set to Breath Life Into Property Market

Experts have predicted that the election outcome will infuse the prime London housing market with new life, causing a ripple effect that will spread to other parts of the UK.

Now that the Labour-proposed mansion tax on properties valued at over £2 million is no longer a possibility, estate agents and economists expect to see rejuvenated interest in the capital’s top end property market. They say that they anticipate a busy summer after months of buyer and seller reticence.

Lucian Cook, who heads the residential research department at Savills, believes that property values in prime central London will go up by 22.7% throughout the next five years. Prime properties outside the capital are expected to increase in value by 23.9%.

Savills had also come up with an alternative series of predictions which found that if a mansion tax were introduced, house prices in central London would have gone up by about 15.9% over the same period.

Non-prime property values are expected to rise by around 19.3% across the UK in general throughout the coming five years, while in London a growth of 10.4% is predicted.

London-based estate agent Foxtons saw its shares jump as the election results were announced. Taylor Wimpey, Barratt Developments and other house builders also showed strong performance.

Mr Cook says that mainstream housing markets are expected to gather a little momentum over the short term, resulting in more enquiries from new buyers and higher transaction levels in general. He expects the biggest growth to take place outside London, particularly in the south of England.

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Jonathan Adams, director of London estate agents Napier Watt, agrees that the property market should pick up now that the election is over.

The signs of a busy summer are already showing. As soon as the exit poll signalled a Conservative majority, London properties worth millions of pounds were put on the market and sold within hours.

A London estate agents confirmed that they had sold a £2.5 million flat and a £26.5 million property in exclusive Mayfair. Another estate agent sold almost £60 million worth of properties in 24 hours.

The luxury sector of the capital’s property market went into overdrive after the surprise election result. Shortly after the polls closed a Belgravia penthouse worth £20 million and a £2.6 million flat in Duke Street, Mayfair were sold.

Interestingly the Mayfair apartment was purchased by an investor who had been waiting for the election results before entering the London market.

 

Wetherell Chief Executive Peter Wetherell said that they processed £29 million worth of offers on Mayfair residences the day after the election.

It seems as though the election result has finally brought an end to the uncertainty in London’s prime property market.The Mansion Tax discussions caused a major upset, and a Conservative win has brought the market some much-needed clarity.

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