A new report has shown Simon Morris that confidence has returned to the prime central London property market following the Tories’ shock win in the 2015 UK national election.
Prime central London
Prime central London is the most robust housing market in the UK, regularly outperforming other areas of the country. The latest London Property Monitor from estate agents Marsh and Parsons showed that prime central London enjoyed modest house price growth of 0.3% in the first quarter of 2015. In contrast, prices fell 1.8% in the outer prime area of the UK capital.
Prime central London reacts to Tory victory
However a report from W.A. Ellis suggested that in broad terms, capital values fell in prime central London across the same quarter due to fears of a Labour government. The report added that the level of transactions declined as much as 30% in some parts of prime central London.
The W.A. Ellis report revealed that the hesitancy that potential vendors and buyers displayed in the run up to the national poll has now vanished. It stated that confidence and optimism have returned to prime central London; viewings, offerings and sales have risen across the sector’s housing market since 8th May. W.A. Ellis also noted that enquiries from domestic and international buyers (especially from the Middle East) have increased since Cameron’s victory.
Market will “revert to its pre-election state.”
W.A. Ellis director Richard Barber explained: “With the election over and a Conservative Government now in place, we believe that the market will revert to its pre-election state. We expect the price falls of recent months to reverse, with some price rises materialising and with five year predicted growth estimated to be in excess of 20%.”
According to Property Wire, Barber also warned: “However, we still expect price growth to be quite modest this year, particularly as the market has not yet had time to adapt to the stamp duty reforms of late 2014. This still hangs over the upper end of the market and still restricts transaction levels and potential capital growth.”
In property expert Simon Morris’ opinion, this may signal good news for investors in prime central London. However the areas has a number of challenges that could continue to hamper the growth of its housing market throughout the rest of 2015.
There are many ways to reap a strong return on investment in London. Some investors may prefer to buy a London property for less than £500,000 so they can minimise initial investment to maximise profit.