During October, the market has continued to be price sensitive and attractive properties priced realistically are selling. Buyers can afford to be choosy and it’s vital to buy a solid property without major flaws— as when there is a downturn, these still sell. Prime central London prices are down 15.2% from the peak in 2014, according to Savills Research, one of the leading UK estate agents.
The price decrease has been due to political uncertainty fuelled by the result of the UK referendum last June to leave the EU (Brexit), some unfavorable changes in taxes including an increased stamp duty (buying tax) and more exposure to capital gains tax and inheritance tax for overseas buyers. However, London will remain a key global financial center and a desirable international city due to many factors including our language, culture, education, legal structure and time zone.
Savills Research has forecast a 20.3% compound price growth over the next five years, with no increase forecast (but no decrease) during 2018. This month, I am highlighting two wonderful properties, both in fabulous locations, that are priced sensibly.
Two-bedroom South Kensington apartment with communal garden
This is a fantastic apartment in a favored South Kensington location. It has a share of the freehold and a south-facing reception room which overlooks a beautiful communal garden. There are two double bedrooms with ample storage space and two bathrooms (one is ensuite). The residence is of a high standard, having been refurbished in the last five years. The price has recently had a dramatic drop from £1.75m to £1.595m, making it an incredible deal. At the peak of the market, this apartment would have sold for £1.95m – £2m. The interiors and exteriors are also in mint condition.
Four-bedroom family home near Kensington High Street
This delightful family home was a former stable: it still has stunning old wooden beams and leaded windows. All the rooms have a south-facing window, so it’s light and airy. The current vendor has owned the house for about 30 years and raised three children in it. Planning permission was obtained for a room on an additional floor plus a roof terrace in the 1990’s and although this has expired, it is likely that the incoming purchaser will get this again, as all the other houses have this extra floor. It really is a charming house that’s full of character.
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Suzanne Millar has more than 20 years’ experience in the property market as both a relocation agent, helping corporate tenants with long-term rentals, and as a property buyer. Before working in the property market she was a consultant in several different human resources areas such as executive recruitment, employee benefits and actuarial consulting. Her former employers include KPMG, Towers Watson, Armstrong International and Karen Deane Relocations. She has a BA in Economics and Art History from Duke University and an MBA from Wharton. Suzanne is American, she has lived in London since 1987 and is married with two children currently at university in the UK.