Online estate agent, eMoov.co.uk, has released its second Property Hotspots Index focussed on the prime central London (PCL) market. Following on from their initial research back in February, eMoov have studied demand for property in 16 of London’s most prestigious neighbourhoods.
The research monitors the change in supply and demand for properties over £2million in the 16 locations, by observing the total number of properties sold in comparison to those on sale.
The latest figures show that the property freeze in prime central London has thawed ever so slightly since February, with the demand percentage rising by 6% on average. However, nearly half of the areas in question (44%) have continued to decline substantially.
The largest decline has been in Primrose Hill with demand for property dropping a huge -71% in the last four months, followed by St Johns Wood (-36%), Fitzrovia (-30%), Holland Park (-24%), Kensington (-16%), Belsize Park (-7%) and Notting Hill (-4%).
The areas that have experienced the largest increase in demand since February are Maida Vale (+66%), Chiswick (+54%), and Islington (+30%).
There was also a rise in demand in Chelsea (+1%), Mayfair (+8%), Knightsbridge (+21%) and Belgravia (+22%), where the average house ranges between £2.1million and £3.7million. Although these areas would have been hit by a Mansion Tax had labour come to power, last week’s election result will have restored confidence in buyers looking to buy at that end of the market.
Since eMoov’s February Index there has also been an increase of 5% in the number of properties over £2million listed for sale, to the two major portals, Rightmove and Zoopla. This increase was driven for the most part by Fulham, Belsize Park, Notting Hill, Primrose Hill, Islington and Chiswick. The uncertainty of a Mansion Tax could have attributed to this rise, as those looking to sell attempted to off-load before being penalised. With that threat now gone, the increased stock in prime central London could see property demand climb further, as sales begin to pick back up.
Founder and CEO of eMoov.co.uk, Russell Quirk, commented:
“Of course the uncertainty caused by the General Election was a large contributing factor, with many waiting to see the outcome before committing to a property above £2million.
However with Labour’s political presence now almost non-existent, taking the threat of a Mansion Tax with it, it will be interesting to see the data points for prime central London in two or three months’ time.
We are already aware of a significant increase in buyer activity, by the well-heeled home owner in the higher echelons of the London market, since Thursday’s election reprieve. It is most likely this is going to translate into a more buoyant picture in the months to come.”