Highlights of the Wetherell March Report
- Wetherell’s 30% Market Share in Last 3 Months
- Wetherell Sponsor the Property Awards
- New To Mayfair Market
- You Can’t Afford to Sell
- Taxing at the Top
- Watch This Space – Mayfair Spring Market
- Current Mayfair Market
- Wetherell’s 30% Market Share in Last 3 Months
Residential Mayfair has had a busy three months over the Christmas and New Year period with Wetherell selling over 20% of the homes equating to nearly a third of the total value of property sold.
The top performer was the sale, on behalf of Grosvenor, of a former period office building, reverting back to residential use in Upper Grosvenor Street. Georgian with 4 windows across and a stunning staircase the house had 12,500 sq.ft. plus garden. In 6 weeks a total of 140 viewings were conducted with 19 offers giving a total value in excess of £300M. (See link at end of email)
Whilst stock has never been lower, the demand for a Mayfair home from around the world has never been higher as more and more people seek out Mayfair’s international reputation for service, elegance, hotels, dining, retail, office space and of course 300 years of heritage.
Wetherell Sponsor the Property Awards
This year Wetherell have agreed to sponsor the “Property Entrepreneur of the Year” Award. Held annually in The Great Room at Grosvenor House the Property Week Awards is attended by 1,400 of the property industries great and good. Nominees are Mike Hussey (Almacantar), David Marks (Brockton Capital), Chad Pike (Blackstone), Jamie Ritblat (Delancey), Gerald Ronson (Heron International), and John Whittaker (Peel Group).
New To Mayfair Market
- Close to the new Arts Club in Dover Street – a 1 bedroom pied a terre in portered mansion block @ £795K
- Close to Claridges and Bath & Racquets Club – A modern 2 bedroom apartment with private patio garden @ £1.695M
- Off Charles Street – A contemporary Mayfair townhouse with roof terrace and garaging @ £6.75M
- Direct view of Jubilee Celebrations. Overlooking St James’s Palace and The Mall, @ £650 p.w.
- Close to Annabel’s – 2 bedroom apartment with roof terrace @ £950 per week
- Shepherd Market – 2 bedrooms with terrace @ £895 per week
You Can’t Afford to Sell
With the advent of the Chancellor’s Budget and continued rumours of “hitting” the rich and overseas investors, the Government should not look at mansion taxes as a solution as present taxes at the top end are stifling availability and turnover as much as lack of finance funds at the other end of the property spectrum.
In 1997 I sold a small Mayfair house as an investment to an “out of Towner” for around £500,000. 15 years later and now worth over five times that amount he thought of cashing in and moving the money into another area where he now wished to invest.
After looking at other properties he regrettably told me he could not afford to sell. After paying capital gains tax at 28% and then a further 5% stamp duty on the next purchase he had effectively “lost” a third of his “capital”.
Taxing at the Top
Just think how that one sale could have triggered a chain of financial activity – now not to be. This is how the tax system works, the government brings in a tax to balance the books and they end up receiving less than before!
Take the Non-Dom tax of £30,000 which will soon to be raised to £50,000. After the initial levy in May 2008 from Chancellor Darling (remember him?) it raised £162M in the first year but 16,000 non-doms left the country and cost the Treasury £800M.
Now our Liberal Secretary of State, Vince Cable is shouting from the roof tops about a mansion tax. The highest earning 1% of Britons pay £47 billion in income tax, almost 30% of the total.
(2011- 27.7% paid of total compared to 22.2% in 2000). Total revenue last year for income tax was £10.35BN @ 50% which was £509 million less than previous year when it was 40%.
UK plc needs to attract wealth producing people. The U.S. top rate of income tax is 35% and for capital gains it is only 15%.
Remember 1979 when the Chancellor Geoffrey Howe cut the top rate from 83% to 60%? Before the cut, the top 1% paid only 11% of tax revenue but by 1998 the same 250,000 were paying 14%. Then when Nigel Lawson reduced it further to 40% the top earners receipts rose to 21%.
Watch This Space – Mayfair Spring Market
Spring will be an exciting time for the Mayfair residential property market.
Soon to be launched –
- An archetypal Georgian mansion with a contemporary twist
- A former period office building reverting back to residential use
- One of Grosvenor Square’s key apartments
- A break up of a Receiver’s portfolio of one bedroom flats
Current Mayfair Market
There are currently only 67 properties openly on the market in Mayfair with 15% of the stock under offer and nearly 50% of those through Wetherell