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Rich West Africans now buying in London’s prime property sector
Russians and the Chinese are known to be keen buyers in London’s prime property market but now investors from West Africa are entering this prestigious market. Prime London estate agent, Harrods Estates Mayfair Office, is reporting a surge in demand from West African buyers in Mayfair with a 40% rise in sales of luxury property to the nationality in the last 12 months and up 400% compared with the previous year. Shirley Humphrey, director at Harrods Estates, explained that the firm has seen a considerable increase in demand from West African’s looking to purchase a pied a terre in Mayfair. The majority are looking to spend between £2.5 million and £6.5 million on a two or three bedroom apartment, where they can stay when visiting London on business or for pleasure. As with many international buyers, West Africans are seeking apartments in luxury developments, which offer 24 hour security, concierge and spa facilities. ‘Family is very important to them and they prefer to cluster buy more than one apartment in the same building so that they have somewhere for their children, parents and grandparents to stay,’ said Humphrey. She pointed out that Mayfair is seeing resurgence over the coming years, with an array of new luxury developments in the pipeline and the return of many commercial buildings put back to residential use. The area has long appealed to British nobility, aristocracy and high society as well international wealthy individuals from around the world, including Middle Eastern, Chinese, Indian and Russian buyers. ‘Mayfair offers a village lifestyle in a fantastic central location. The excellent shopping on Mount Street and Bond Street, fantastic restaurants and five star hotels, contribute to the areas popularity and with Hyde Park and Knightsbridge a short stroll away, many of our clients love the location as both an investment and lifestyle choice,’ explained Humphrey. ‘West African purchasers are drawn to living north of Hyde Park or just off Park Lane on Upper Grosvenor Street or Mount Street and prefer period buildings with newly refurbished luxury interiors which they can move straight into. Although they are buying property as an investment, the key thing for West Africans is owning a home in London which they can use for a minimum of a few months of the year,’ she added. Continue reading
UK house prices up 2% in first month of 2015, latest index sho
House prices in the UK increased by 2% between December and January, the biggest rise for January since 2009, according to the latest property index figures. The data from the Halifax also shows that in the three months from November to January prices were 1.9% higher than in the previous three months and the quarterly rate of change increased for the first time since July 2014. But it remains below the rates recorded between June and September last year and overall the Halifax expects a moderation in house price growth during 2015. It predicts that house prices nationally will increase by 3% to 5% compared with 8% in 2014. Prices in the three months to January were 8.5% higher than in the same three months a year earlier. This was an increase from 7.8% in December. This measure of annual house price growth was at its highest since October 2014 when it was 8.8%, but remains significantly below the peak of 10.2% in July 2014. It points out that sales increased by 15% in 2014 but despite this annual rise, sales peaked in the first quarter before steadily declining during the course of the year with sales in the final quarter 5% lower than in the first quarter and 1% lower than in the third quarter. ‘This bounce-back in house price growth in January coincides with reports of the first rise in mortgage approvals for six months in December. These improvements may indicate that the recent declines in mortgage rates, the reform of stamp duty and the first increases in real earnings for several years are providing a modest boost to the market,’ said Martin Ellis, Halifax housing economist. ‘It is, however, too early to draw any firm conclusions. The monthly figures in January can be particularly volatile due to the lower volumes of activity at this time of year and there have been unusually large rises on occasion in the past, such as in 2007 when it was 2.3% and 2.4% in 2009,’ he explained. ‘Housing demand should continue to be supported by an expanding economy, continuing low mortgage rates and a boost to households’ spending power resulting from lower consumer price inflation and reduced fuel bills. Nonetheless, we expect the overall downward trend in house price growth seen since last summer to continue over the coming months. Nationally, house prices are predicted to increase in a range of 3 to 5% in 2015 compared with 8% last year,’ he added. According to Rob Weaver, director of investments at property crowdfunding platform Property Partner, the figures confirm that the property has still got some punch. ‘A strong January and the first quarterly rise for six months could suggest another buoyant year but I suspect we are more likely to see a period of gentle and sustained growth,’ he said. ‘It's hard to see how the property market could under-perform in 2015. Undershoot 2014, yes, but under-perform, no. Economic conditions at home… Continue reading
Prime central London transactions slowing but prices remain stable
The introduction of a new stamp duty propertytax structure in December, the forthcoming general election and the spectre of a mansion tax have created a level of uncertainty within the UK’s prime property market, it is claimed. New research from prime central London agency W.A.Ellis, a JLL company, shows a sharp reduction in prime central London transaction levels. The firm compared sales transactions within Knightsbridge, Chelsea, Belgravia and Kensington post code areas and found that transactions in January 2015 fell by 34% compared to a year ago. This reduction is most sharply felt within the house sector, with only nine sales occurring in January 2015, contrasting with 25 in January 2014, a reduction of 64% and the firm has seen a large number of houses being withdrawn from the market as discretionary sellers adopt a ‘wait and see’ more cautionary approach until after the election. The research also shows that while the transaction levels have dropped year on year, the average rate per foot of all the houses sold across the postcodes has remained stable at around £1,800 per foot. ‘Comparing year on year transactions within the same month only provides a snapshot, but the overriding sentiment at the upper end of the market is undoubtedly one of caution until the political path becomes clearer,’ said Richard Barber, director at W.A.Ellis. ‘At the lower end, however, we predict an increase in activity from the over 55s, releasing deposit monies from pensions to fund either buy to lets or investments for their children and we expect this to have a strong upward effect on the market between £200,000 and £1 million,’ he explained. He also explained that whilst the Mortgage Market Review (MMR) has had a curbing effect on the amounts that first time buyers can borrow, the so called bank of Mum and Dad is likely to subsidise the shortfall in mortgage funds, particularly as the market in equities and gilts is looking unpredictable. The firm’s research also shows that the prime central London lettings market saw a flourish of activity in the first week of January, followed by a steady stream of enquiries, viewings, and subsequent new tenancies. The firm forecasts that central London rents will rise 3% over the course of 2015. ‘January saw activity across the entire breadth of the market, with well-presented one and two bedroom properties letting with relative ease. Substantial houses gained much deserved attention, too, from families who have, no doubt, been hibernating over the Christmas period,’ said Lucy Morton, director and head of agency. She pointed out that demand for new build property, particularly in W2's prized Merchant Square development, is most definitely on the up, and the firm is seeing tenants’ expectations on quality of finish and furnishing increase considerably. ‘Stock levels remain high as many would be vendors with pre-election nerves opt to list their properties on the rental… Continue reading
