The Conservative Party’s surprise victory in the general election has given London’s luxury property market a much-needed shot in the arm, with estate agents in central areas of the capital reporting a surge in sales of homes worth more than £2m.
More than £100m worth of prime property in central London changed hands the day after the polls closed as fears over the effect of the Labour Party’s proposed mansion tax were laid to rest.
One estate agent is reported to have said: “My mobile lit up like a Christmas tree once the election result became known. The phone vibrated and flashed all day and didn’t stop until it ran out of juice.”
The air of uncertainty caused by the Labour Party’s plans to also change stamp duty rates and introduce higher rates of income tax has now been replaced by a far more optimistic outlook.
And combined with the arrival of spring, this is set to have a positive effect on sales volumes in the Wimbledon area.
Past experience teaches us that in the six months following a general election there are typically 15% more transactions than what would be expected in a non-election year.
And a rise of up to 30% in the number of transactions, when compared with the market before the nation cast its vote, will also mean a rise in property values as the housing sales sector becomes more heated.
Mortgage lender Halifax and the Centre for Economics and Business Research are both forecasting that property values could rise by 5% before the end of the year. And the disappearance of the threat of the Labour Party’s mansion tax could see the values of high-end properties jump 20% over the next five years.
While this area has long attracted the Scandinavian community because the Norwegian School in Arterberry Road follows the same curriculum as country from which it takes its name, the number of buyers from other parts of the world is set to increase because of the shortage of desirable family homes in central London.
Overseas investors are drawn to the magnificent mansions and prime family homes near Wimbledon Common for the same reason as domestic buyers.
But those who chose to let out their property investments will also be cheered by the Conservative Party’s election victory.
The Labour Party had said it would introduce rent controls and a national landlord register. But with this twin threat no longer on the horizon, the arrival of spring makes it an ideal time to take advantage of renewed confidence in the property market.
If you are considering selling or letting out your home, please contact Robert Holmes & Co to receive an up to date appraisal on the value of your property.