Richard Barber, partner at Prime Central London estate agency, W.A.Ellis, comments:
"It is interesting to note the number of flat transactions have dipped year-on-year across our Prime Central London postcodes, from 808 sales in 2013 to 718 sales in 2014, but more houses have been sold year-on-year; 267 sold in 2014 to date compared to 213 in 2013, which could be a sign of fears over a possible mansion tax. The trend shows that the achieved prices are below the original asking prices, and doesn't take into account any price reductions throughout the property's time on the market – currently; one fifth of all property on the market has had a price reduction at some point.
The average price per square foot paid on property above £10m in Prime Central London increased by 31% from 2009 to 2013, however, in Q2 of 2014, this is down by 5.7%, and there has been a 13.6% reduction in instructions in Q2 of 2014 compared with the same period in 2013. In contrast, the sub £2m market has seen an average price per square foot rise of 4.1% in Q2 across London.
Over the past few weeks, we've exchanged on a wide range of properties, from a prime car parking space near the Albert Hall to the highly coveted Chester Street at £7,375,000. As we approach the autumn market, realistic pricing is key and serious sellers must look at recent sales evidence before they consider their asking price and not let agents talk them into marketing at a figure that will not be achieved.”
Lucy Morton, senior partner and head of lettings at W.A.Ellis, comments:
“We have experienced the busiest start to a month we've ever known with regards to new tenancies, which have increased by 84% compared to the same period last year. The seasonal student market is in full swing, with students focusing on finding accommodation for the upcoming year and demand exceeding supply.
The family house market is also facing a lack of supply due to landlords selling because of uncertainty around a possible mansion tax. Landlords who choose to stay are benefitting, however, and this week we've seen three good Chelsea houses (Jubilee Place, Flood Street and Markham Square) let within a week of reaching the market.
It is this level of the market that is most interesting and reflective of the recovering employment market. Corporate relocation budgets have increased, and we've seen the family house market rise by 3.4% in the second quarter of 2014.”
