Mayfair – It’s No.1 – It’s Top of the Pops!

Two events happened last month that stuck in my mind; the first was the death at 84 of Sir Jimmy Savile, who hosted the original chart show Top of the Pops on the BBC. The second event was one of our leading property analysts reported that Mayfair was now No.1 – top of the pops – having the highest growth ranking over the last 6 years for average pounds per foot growth on residential property.

The later did not surprise me as just over 12 months ago Wetherell predicted a step change in Mayfair residential values. A substantial 20% rise has been proven over the last year with entry level prices in Mount Street / Davies Street going from £2,500 per square foot (p.s.f.) to over £3,000 p.s.f.

Wetherell have maintained for many years that Mayfair was undervalued compared to Knightsbridge and Belgravia and it is an endorsement when other commentators back up our opinion.

Our current prediction is that there is still further growth to come as our “Mayfair Aficionados” pay a well deserved premium above those prices obtained in surrounding areas.  Mayfair has benefited from enormous capital investment and improved amenities over the last decade and overseas buyers will push prices higher over the next 10 years overtaking the other prime residential areas.

Briefly coming back to Sir Jimmy – he hosted the first show on New Year’s Day 1964 and also the closing programme 42 years later on 30th July 2006. Although the original programmes were in black and white he died his hair a different colour every week!

Values might be booming in Mayfair but transactional volumes this year will be 50% off the average volume turnover between 2005 and 2007. Any developer selling into this “void” with new stock will benefit from the supply and demand imbalance.

Don’t kill the Golden Goose

  • The tax office, HMRC, revealed recently that the top 1% of tax payers contribute an astonishing 28% of the total income tax this year.
  • 33 of Britain’s 73 billionaires coming from abroad.
  • UK lost 16,000 non-doms due to Labour’s £30K levy (an estimated £800M in taxes).
  • Greater London is the 7th largest economy in Europe
  • The West End under threat as Westminster Council levies “Nightlife Tax”

Mayfair Fights Car Parking Ban
With all this positive press for Mayfair it is a shame that Westminster Council proposes to take away 1,700 car parking spaces out of the West End by banning parking on yellow lines until midnight.

The good news last week was that London’s Mayor Boris Johnson came out against the council’s plans calling it “a tax on nightlife”.  The bad news was that Colin Barrow; the council’s leader will not listen and says there will be no U turn even though he admitted “the majority” who responded to the consultation about the proposals were opposed to it!

We now have to await the response from the council on the High Court action for a Judicial Review.

See our blog post for Boris Johnson remarks:
http://www.wetherell.co.uk/wetherell-blog/drop-your-parking-changes-before-its-too-late-boris-tells-westminster/

MAYFAIR MARKET STOP PRESS

Mount Street Christmas Lights
Lastly on a festive note – After missing out last year due public realm works we turn on our Christmas lights on Thursday 24th November.