“Put a Tiger in your Tank! So went the 1959 Esso petrol advertising that became one of the most famous campaigns in advertising history.
Latest Wetherell Research/ LonRes data indicates that there is still “some petrol left in the tank” for Mayfair values as they continue to outpace the rest of prime central London (PCL) to regain the title of London’s No.1 area.
Wetherell Research on the 2015 Mayfair residential sales market indicates that the percentage value growth from a base of 2007 value is still increasing for all flat types whilst the rest of PCL shows a slight fall in percentage growth.
TOPICS FOR FEBRUARY
• MAYFAIR verses REST OF PCL
• LONDON’S STAMP DUTY BURDEN
• POUNDS PER SQUARE FOOT
• PSYCHOGEOGRAPHIC MAYFAIR
• MAYFAIR FOOTNOTE
MAYFAIR verses REST OF PCL
39% Mayfair Premium
2015 Average £psf (average pounds per square foot) values for all flats sold in Mayfair now stands at a premium of 39% over the rest of PCL for 2015.
Average £psf values in Mayfair has risen from £1,539 psf in 2008 to £2,386 psf in 2015 compared to £1,087 psf to £1,722 psf in the rest of PCL.
91% of Mayfair sales for flats and houses are over £1 million compared to 75% for the rest of PCL.
23% of Mayfair sales for flats and houses are over £5 million compared to 13% for the rest of PCL.
LONDON’S STAMP DUTY BURDEN
Latest figures reveal that the receipts from stamp duty after the Chancellor’s increases has resulted in a sharp “capital reduction” of revenue due to a reduction in sales.
This news will surprise no-one in the property industry and once again London bears the tax burden as it now accounts for nearly half of stamp duty revenues in England & Wales.
Westminster with Kensington & Chelsea now account for more than 10% of all stamp duty revenue with London’s top 6 boroughs now accounting for a fifth of all revenue.
Nationwide the tax take between January and October 2015 was down by 12.1% compared to same dates in 2014 resulting in a £620M shortfall for England & Wales.
With estate agents reporting up to a 25% drop in volume turnover for prime properties in central London – the fall in stamp duty revenue will soon make a substantial difference to the Exchequer when you consider that the overall London Prime sales market in 2015 amounted to £5BN for flats and £3.5BN for houses.
And now we have a March Budget on the shoreline! When you consider that there have already been 13 major tax changes since 2012, it is not surprising that buyers are cautious.
When you factor in the high transactional costs of moving then it is not surprising that many more viewings of a property are undertaken before a buyer makes a decision.
It would be a costly mistake if you made the wrong decision, so if you are looking in Mayfair then all the more reason to look through the specialist agent Wetherell.
POUNDS PER SQUARE FOOT
What does £2K psf buy you in Mayfair and what more do I get if I pay £3K psf?
All the properties are listed links at the end of this email.
What do I get extra by paying 25% more?
• An immaculate newly developed town house behind a period facade @ £9.95M
• Two newly priced reduced flats in Duke Street @ £2.5M & £3.5M
• A south facing lateral apartment off Grosvenor Square with conservatory & terrace @ £5.6M
Why Pay £3K psf+ ?
What features bring a property into this category?
• A low built house with swimming pool, double height reception room, garage and quiet location @ £18M
• A Duplex in Park Lane with its own private garden @ £5.75M
• An immaculate south facing lateral apartment in Mount Street @ £7.15M
• One of the largest roof terraces in Mayfair @ £4.95M
• Period Park Lane white stucco lateral apartment building with 2 balconies over Hyde Park @ £6.75M
The international, national and local demand for Mayfair continues to grow not just residentially but commercially and culturally. London is the capital city of the world and Mayfair its social and heritage hub.
Heritage retail brands (going back hundreds of years) are operating in buildings built when the brands commenced.
The Mayfair area is a psychogeographic experience. The best definition of which is “the practice of exploring the urban environment while being led by curiosity and a paused sense of time and place”
The practice of psychogeography is nostalgic on some level; for a time when the pace of life in the city was slower and one could frequently take the time to absorb the details of the Mayfair area.
A sense of wander/wonder is essential to find the simplicity in urban living.
In all the years of writing my monthly reports I have tried to make it an effective communication medium for the story of Mayfair.
I try to use Ethos (my credibility over 34 years specialising in the area), Logos (persuasion through logic / data / and statistics} and finally and most importantly Pathos (telling the story of Mayfair and appealing to your emotions).
However, to command your presence and attention, it takes more than just confidence, competence or charisma. It takes integrity – In writing the reports I have always had my integrity “pillars” – to inform, to educate, to inspire and if all else fails – to amuse you.
To my regular report readers you will recognise the above as “anaphora” – repeating the same word or words to hammer home the message – No one knows Mayfair better than Wetherell – bringing residential life back to London’s No.1 area.