The key changes affecting the property market were as follows:
• Stamp duty increased by 2% for properties over £2million to 7% from midnight
• Stamp duty on property owned by a non-resident entity increased to 15% with immediate effect
• Government to bring in new general rules to clamp down on tax avoidance as part of the 2013 Finance Bill plus a warning that this is likely to include retrospective measures

Prime property

I have to admit, the 2% stamp duty increase took the property market by surprise. It had been leaked to the FT that morning but no-one thought it would take effect immediately, so we were straight on the phone to our buyers for property over the new threshold and plans for Wednesday afternoon were scrapped as we assisted affected Clients to exchange before the midnight deadline, saving all concerned hundreds of thousands of pounds.

In the longer term, Manse & Garret Property Search are not forecasting significant change to prime property sales in prime central London. Clearly the £2 – £2.25m price bracket will feel some aftershock for a few months, but given the lack of supply and increasing demand for stock in the best areas, we don’t think the increase in stamp duty will have a marked effect.

However affected property just outside the centre is likely to take a hit. Popular areas from Richmond, Chiswick and Fulham to the West, Islington, West Hampstead and Muswell Hill to the North and Greenwich and Blackheath to the East are likely to suffer few sales between £2m and £2.25m in the months to come. Motivated vendors are likely to take a hit on price but many will stick to their guns and hold out for the extra hundred thousand and these sales will stick.

Although about 80% of the prime central London market is dominated by overseas investors and many people buy using a corporate structure, in the grand scheme of things, given the capital gains which are routinely made in prime central London, we don’t see the new rules making a difference to price. After all, the best apartments on the best roads from Knightsbridge, Belgravia and Mayfair to Chelsea and Notting Hill are appreciating at circa 20% per year. Most investors will hold prime central London real Estate for 3 years or more so although the 7% stamp duty is an irritation, it won’t make a difference to the logical investor. Also the factors driving the prime central London property market remain, ie political instability in parts of the middle east, the rise of emerging markets who want to keep their offshore earnings offshore but in a stable political and economic situation and global economic uncertainty which favours prime central London real estate as an asset class.

The good news for buyers is that the current low stock levels are likely to be improved for the next year or so, as those looking to sell, rush to do so, mindful of the threat of retrospective legislation, when it comes in in 2013.

Super-prime property

It is the buyers of super-prime property £15m plus who will suffer most from the budget 2012 and it will be interesting to see the effect on this area of the market. There is very little to choose from in this market, few are advertised officially and those which are available are frequently priced using a multiple of their true value. Most of these houses and apartments are used as pied-a-terres and I suspect some will struggle for a few months, while the tax advisors of the super-wealthy find a scheme to mitigate tax and the prospective buyers consider whether they still want an awe-inspiring place in the UK.

The sub-£2 million property market London and Country

There will inevitably be a number of investors with large portfolios of property held by offshore companies who decide to liquidate ahead of the 2013 Finance Bill. As a result we anticipate more stock coming to the market over the next year but whilst this will increase choice for buyers, we don’t think it will have a huge impact in price, although prices should hopefully stabilise this year and not make the significant gains seen during 2011.

Given the issues with very restricted supply and burgeoning demand, which are likely to continue, we definitely don’t see the measures reducing prices.

Technorati Tags: budget, capital appreciation, prime central London property, Stamp Duty, Tax

Tags: budget, capital appreciation, prime central London property, Stamp Duty, Tax

Here at Manse and Garret Property Search we source properties in London’s best areas and on London’s best roads. However only occasionally do we come across properties in London’s best buildings – buildings so unique and well known that they often command a higher price tag than other comparable homes in the area. We always have to ask ourselves, is the extravagance of the address worth the extra money?

When the GLC was abolished in 1986, the grand, Ralph Knott designed “Edwardian Baroque” building located on the south bank of the Thames became surplus to requirements. The site was eventually sold in 1992 to the Japanese property developer Shirayama for a reported £60m – just before a recession and property slump. Given the economic climate, this figure raised a few eyebrows in the property world and some were concerned that Shirayama would not have the money to convert the building, having already spent so much to procure it. With hindsight it was a solid investment. The luxury hotel, aquarium, museum, exhibition space and restaurants attract over 17million visitors a year. The converted flats sell for around £800 – £900 a square foot – outside of the popular Shad Thames, these levels are uncommon for the SE1 postcode. These well-located flats, in the handsome Portland Stone building with excellent views have never failed to attract buyers and tenants.

Last year it was announced that the long term viability of the Houses of Parliament as the seat of British government was being questioned. Having always been an expensive place to run, the whole building is suffering from subsidence, and is slowly sliding into the River Thames. Thought to have been affected by the excavation of the Jubilee Line extension in the 1990s, and the underground car parking complex on site, surveyors have said that repairs to the building would take at least five years to complete. Government accountants argue that it doesn’t make sense to spend an estimated £1billion to repair an estate that is worth £1billion, although I am sure that English Heritage might think otherwise.

The Houses of Parliament, if converted to commercial and residential premises would no doubt be an even more popular housing and property destination than County Hall.  With 872 ft of river frontage on a site of approximately 8 acres, the number of luxury residences that could be created would certainly tempt any number of wealthy buyers, many of whom would happily buy off-plan to own such a desirable piece of real estate in one of London’s best known buildings with the SW1 postcode to match. Proximity to Westminster tube, to the West End and the caché that comes with owning property in one of the world’s most iconic buildings would certainly create demand for any residential property that was available on site and it is likely that the price per square foot achieved would be well above the £1,500 average that this part of Westminster currently commands.

So it seems sometimes paying more for property in one of London’s best buildings can pay off, not to mention also giving you an address everyone will recognise and a home or business everyone will want to come and see. If you need Manse and Garret to locate a unique home for you or a unique addition to your property portfolio please don’t hesitate to get in touch.

Technorati Tags: Historic buildings, House prices in London, London property, Planning Permission, property market news, Westminster house prices

Tags: Historic buildings, House prices in London, London property, Planning Permission, property market news, Westminster house prices

As a high end Property Finder, I often find myself musing on what I would buy and where I would buy it if I stumbled across a large sum of money. It can be quite a fickle day dream of mine as I can never quite decide if I would spend my (imaginary) money on an airy flat in a red-brick  Kensington mansion-block, a delightfully gothic house in Hampstead or a white stucco flat on a garden square in Pimlico (with access to the tennis courts, of course).  

‘Property Porn’ is the nation’s past-time, and the Metro indulged commuters this morning with a story about a unique house, in Newquay, Cornwall, which comes with its own suspension bridge.  I don’t think the 30 ft suspension bridge is part of the appeal, but rather something that you’d gladly put up with to live on Towan Island – a rock surrounded by the sea when the tide is in and a sandy beach when it’s out. Originally a tea-room, the 1930’s house has been lived in by the current owners for just over 10 years and has direct and un-spoilt sea-views. The extraordinary location and sea-views could be yours for £1million.

Photograph taken by Ennor

What will £1million buy you in London, Brighton or Sussex? Well that of course depends upon the location. In Knightsbridge, arguably the most prime of prime central London, £1million would buy you a one bedroom flat on the second floor of a very nice mansion block. In trendy Shad Thames, SE1, beloved by city folk who hate public transport, you could get a spacious two bedroom warehouse conversion with roof terrace and view of Tower Bridge for the same amount.  In Sussex you could move in to a charming rectory with a beautiful cottage garden. In Brighton you can buy a luxury three bedroom apartment with roof terrace and direct sea views, or lots of family houses in good roads and still have a few hundred thousand in your back pocket.

As London and Sussex Property Finders we don’t know much about property in the South-West, but if you’re searching for a unique property in London, or sea views in Brighton or Sussex, call Manse & Garret Property Search, the UK’s Best Property Finders on 020 7923 7564 and let us find it for you.

Technorati Tags: Buyers agents, House Prices, House prices in London, London Buyer's Agents, South East House Prices, sussex house prices

Tags: Buyers agents, House Prices, House prices in London, London Buyer's Agents, South East House Prices, sussex house prices