Like the day before the introduction of Stamp Duty, when millions of pounds of prime residential property was exchanged, the 8 May 2105 is likely to go down in property history for agents across London as over £200m worth of deals are thought to have been put through on post-election day
Estate agents across London have reported that exchanges and offers estimated to be worth well over £200 million happened across Prime Central London on 8 May. Many London agents started work from the early hours of the morning, when it became clear that the Conservatives were in the lead and the calls started pouring in.
Peter Wetherell, Chief Executive of Wetherell has said that the London property market is “back in business” now that the concerns of Mansion Tax and Non-Doms are out of the way.
“Wetherell is currently processing some £29 million worth of offers that were made on Mayfair property to us on Friday 8 May straight after the Election, which included a £26.5 million palatial property and another £2.5 million flat, both in Mayfair.”
Meanwhile, Gary Hersham, Managing Director of Beauchamp Estates (seen on the BBC2 series Under Offer) called Friday 8 May “bedlam”, as his phone rang off the hook with calls from vendors and buyers. One of the properties finalised on post-election day for his company was a £20 million pound property in the West End.
Gary said: “Friday 8 May brought a very welcome result for Great Britain PLC. We will now see property activity in prime central London return to previous levels, if not surpass them, as delayed and pent-up activities are given the green light. Property played a very influential role in this election, voters wanted economic stability, the country’s books balanced and their homes safe from a Mansion Tax. Labour’s talk of a Mansion Tax upset Middle England and talk of abolishing Non-Dom status upset London and the City.”
“If Friday 8th May is any indication we will now see a big wave of previously pent up demand unleashed in the London housing market, which will lead to a rise in new instructions and sales across London and the Home Counties in particular, especially in the premium sector of the housing market.”
Beauchamp Estates wasn’t the only estate agents to see huge deals go through following the Conservative’s win on 8 May. Jake Russell, Director at Chelsea estate agent Russell Simpson said that the agency completed four deals on Friday 8 May worth a combined total of £50 Million. He said “all four deals were in Chelsea and each hinged on the election result.” And London agents at Rokstone had exchanges and offers on Prime London property worth a cool £59.7 million, which is its biggest set of deals since the rush on the day before Stamp Duty came in.
“On Friday Rokstone exchanged on £22.2 million worth of property, a £20 million penthouse in Belgravia, and a £2.2 million flat on Duke Street in Mayfair. All of this was done at lightening speed, and I spent the whole of Friday rushing from one meeting with lawyers and investment advisors to another, like a whirling dervish,”said Becky Fatemi, Managing Director of Rokstone.
“I think what Friday indicates is that we will now see three big waves of sales hitting the London marketplace. The first wave started on Friday and will continue this week and will consist of a stampede of end user buyers frantically pushing to get properties exchanged before vendors decide to increase asking prices as a result of the election.”
“The next wave will start later this week which will consist of buy-to-let investors who will go rushing to their lenders today and tomorrow and then come looking later this week and the week after for opportunities.”
“The third wave will hit as we reach the summer and will consist of Middle East and Asian buyers who will be here even longer this summer since Ramadan finishes early this year on 17 July.
Becky predicts that these three waves of buying will “push demand up by 30% over the next four months”, and that by December 2015 residential prices in Prime Central London will rise by 10%, so that a £1 million home in Prime Central London, will be worth another £100,000 by the end of this year.
She also suggests that the London property market will see a surge of buy-to-let corporate investors who will take advantage of the newly boosted London property market that should see an influx of new properties for sale. Becky warns that “over the next few months potential purchasers in Central London will get a rude awakening. We will see a return of gazumping and sealed bids, and buyers will feel under pressure not just to offer a good price, but also to compete with other people now flooding into the London market.”