Record Breaking Values Lift August Gloom on Low Turnover of Sales
Government Health Warning
New Mayfair Instructions
Q: What do Mayfair Property Values and Tattoos share in common?
Whilst on holiday I met a middle aged man lamenting on the folly of his youth as the starkness of his decorations faded against his increasing tan.
Likewise in preparing this report on “Record Breaking August”, I marvelled on the benefits of hindsight with a 66% increase in a Mount Street property value over a 2 year period and the sale of a 1st floor two bedroom Charles Street apartment that has gone from £845,000 (£572 p.s.f.) to £3.325M (£2,400 p.s.f.) since 2003.
Two years ago I predicted that Mayfair was going to experience a “Step Change” in residential values. Vision might come from Hindsight, Insight and Foresight but the Mount Street sale also highlights the phenomena of former offices reverting back to their original residential use as a house.
FULL REPORT IN PDF ATTACHMENT
The old economic model used to create greater value by splitting a building into multiple units no longer applies for Mayfair and other prime central London locations.
2003 TO 2012 VALUES
The second sale was a 1st floor high ceilinged apartment close to Mark’s Club in Charles Street, sold three times by Wetherell in the last 9 years as a “freehold” apartment. After refurbishment it doubled in value between 2003 and 2006 and the recent sale shows a further doubling of price.
Autumn Mayfair Market?
The triumphs of the Olympics dulled the August market with only 5 residential sales in Mayfair. However with website viewings now up by 50%, the diary is once again full with appointments and there is a healthy pipeline of property under offer; these are strong indications of an active market up to the end of the year as long as government does not intervene!
Government Warning for Prime Property
The 2012 Budget announced the stamp duty land tax (SDLT) changes to single dwellings over £2m in value and a consultation paper was published on 31 May fleshing out the details of 15% SDLT / Annual property charges and new CGT charges.
The consultation period ended on 23 August and we now await publication of draft legislation before the end of the year.
One of the economic drivers of the UK is London and the South East and the prime central London property market has continued in strength whilst the rest of the market has languished.
We believe that the “Mansion Tax” is profoundly misconceived and the whole budget proposals were political not economic and hastily cobbled together. They have sent out the wrong message to investors.
New Instructions Sales Department
New Instructions Lettings Department
Last Hindsight quote:
The notorious 1920’s Mayfair resident Tallulah Bankhead once remarked;
“If I had to live my life again I’d make all the same mistakes–only sooner”