The demand for properties, especially luxury homes in the price bracket of £2 million and £5 million is gradually increasing in prime Central London despite the higher rates of stamp duty. According to Prime Central London Sales Index released by Knight Frank, the leading indicators of demand and transaction activities for properties priced above £2 million are displaying signs of improvement.
For instance, the number of home buyers evincing interest in purchasing properties priced above £2 million increased by 8.7 per cent between January and August when compared with the corresponding period last year. Similarly, the total number of properties available for sale for the period under review was 39.3 per cent year-on-year. Prime Central London happens to be one of the most robust markets for luxury properties in the world and these activities indicate that the recent political developments do not have seem to have impacted the property market in the near term.
Interestingly, the number of viewings of the properties in the price range of £2 million and £5 million in prime Central London increased by two-thirds when compared to the corresponding period in 2015. As of now, there is no clear picture on how many of these inquiries converted into successful transactions. But it is heartening to note that the demand for luxury properties in prime Central London continues to rise.
There are embryonic signs of strengthening demand in the prime central London residential market as higher rates of stamp duty are increasingly reflected in asking prices - Knight Frank