Central London Market Update
2015 has started a little more subdued than we would like, but there is still some activity.
It is not surprising that the market is in a pensive mood.
As we know George Osborne's Autumn Statement has made the buying of properties in excess of £1.5m considerably more expensive due to the increase in Stamp Duty (SDLT). Couple this with a General Election in early May and the possible threat of a Mansion Tax on properties in excess of £2m and one can see why people in this sector of the market may wish to sit on their hands and see what happens.
During our office meeting last week we were discussing the possible repercussions of Eurozone Quantitative Easing program on the central London property market.
Anthony Hilton, in the Evening Standard on Wednesday, seems to feel that some of this money released in Europe will make its way here to the UK, searching for safe assets in which to invest.
Central London property has been historically perceived as a safe haven for investment. However, recent Chancellors have made the costs of acquisition in personal name, or off-shore companies (and holding in the latter) more expensive.
It will be interesting to see if these extra costs and the possibility of a Mansion Tax put a dampener on this hopeful enthusiasm for London Property from these holders of Euros. We hope not!
We will keep you in the loop.