Beating The Brexit Blues
New Research Shows Belgravia Is Defying The Market
Last week, Janine Stone & Co. were invited to attend a private gathering of property insiders who operate within the residential areas of prime central London.
Giles Cook, Head of Residential Agency at Best Gapp, spoke of the latest research his company has commissioned about how Brexit uncertainty is effecting the market in Prime Central London.
What the latest research says…
Whilst the prime central London housing market remains in a state of flux, Best Gapp’s research noted that Belgravia appears to be defying market trends.
The new research states “While sales volumes across prime residential areas of London were 3.8% lower during the first quarter of 2019 compared to the year previously, Belgravia recorded its highest quarterly volume of sales since April–June 2015.”
Best Gapp’s report suggests that this positive trend is this iconic neighbourhood is being driven by savvy purchasers, seeking to benefit from current pricing in the market. With average prices per square foot currently in the region of £1,630, Belgravia offers a good value proposition when compared to Mayfair and Knightsbridge where values hover around £2,000psf, says Cooks’s latest research.
Furthermore, over the past year, nearly one in four properties sold in Belgravia had a lease length of less than 50 years, in comparison to one in thirteen in other prime residential areas. For some, purchasing a leasehold property is seen as purchasing a depreciating asset. However, for shrewd buyers in a challenging market such a purchase may well appeal.
The research suggests that at £974, the average price per square foot of property sold with a lease length of less than 50 years across Belgravia is 45% less expensive than those sold with a lease length of over 100 years (£1,766). Such properties therefore attract less of a tax burden in terms
of stamp duty land tax, inheritance tax and capital gains tax at point of sale.
Consequently, in the current market conditions Belgravia seemingly offers a greater supply of these attractive investor properties.
N.b. The intricacies involved with extending the lease, or leasehold enfranchisement, are undoubtedly complicated and we advise any prospective purchaser to contact us for specialist advice and guidance.