Latest London Property News: January 2020
Market News & General Election Result
As we are all aware, the prime London market has slowed down due to both political and economic uncertainty. The result has been a build up of good quality buyer demand with very few properties currently available for sale. A significant number of sales were pending the election result. Some subsequent sales were substantial – a ￡65m house sale was reported in Central London to a European family, and another house sale at ￡28m to an international Asian family in North London (both exchanged on Friday immediately after the election result) which demonstrates renewed buyer confidence in the market. We can now expect a greater sense of urgency to the market with more committed buyers, although this may still harden some sellers’ price expectations.
We expect a modest price growth in 2020 due to political certainty, however we can expect some economic uncertainty throughout the course of 2020 until a trade deal is agreed with the EU. Therefore, a bounce in demand at the start of the year is possible, however this may slow towards the end of the year whilst we agree a trade deal with the EU.
Stamp duty will also be a talking point in 2020 after the Conservative party have proposed an additional 3% surcharge on buyers who are non-resident in the UK. We can expect this to contribute to some urgency for international buyers to transact prior to the change.
International buyers will also be looking to buy whilst sterling is still weak. We expect sterling to strengthen progressively as the economic situation becomes clearer. This will be particularly impactful after trade deals are agreed with the EU and other trading partners. This will likely provide a small window of opportunity for international buyers to take advantage of. The strength of the pound will likely be the catalyst for a recovery in prices over the next 5 years.
Sold in December | Portman Square | ￡4,950,000
Jaffray Estates are proud to have completed on the sale of this 7 bedroom property in an popular art deco block with 11 windows overlooking Portman Square. An extremely complicated sale that involved the sale of a Channel Island company rather than an actual residential property. Altogether this involved 6 offices of solicitors across 3 jurisdictions! After several months both buyer and seller are now extremely happy, as were we to sell this property ahead of our multi agent competitors. This demonstrates that good quality property, well located, and at fair market value will always sell regardless.
Sold in December | Portman Square | ￡1,500,000
Another complicated transaction in this popular block: a probate sale held on a mid-term lease requiring complete modernisation. Also included a rare parking space held on a separate lease. An excellent result for our seller and a very happy buyer to secure a great flat; and again we were pleased to sell this before our competitors.
The Year Ahead
As per the first part of this newsletter we can expect a fragmented 2020 as we overcome the various discussed obstacles. And as always fair market pricing will be imperative in order to achieve sales along with plenty of hard work and professionalism here.
‘The new year stands before us like a chapter in a book, waiting to be written. We can help write that story..’
Contact Us
For more information on any of the above article please get in touch with Nicholas Jaffray by telephoning: 020 3091 9311 or via email at: [email protected]. Full details of our current properties for sale can be found via the company website: www.jaffray-estates.co.uk/property-for-sale .