A new report from boutique estate agency Patterson Bowe has revealed that the outcome of the General Election has been good news for the swanky borough of Kensington and Chelsea in London.
With the threat of mansion tax a distant memory, the agency suggests that there has been an average of 30 would be buyers for each property listed at £2m or above in the borough.
As a result, vendors at the top end of the luxury market have been able to achieve above average asking prices for properties over £2,000 per square foot in prime regions.
Despite the surging interest, Stuart Patterson, Managing Director at Patterson Bowe, believes that concerns over Stamp Duty is still the largest obstacle to smooth transactions of homes valued over £2m. This, he believes, has led to a drop in supply with a surplus in demand.
Demand for £2m homes in London borough increases
Mr Patterson said, ‘of the properties we currently have under offer at £2m and above, the majority have now achieved above average prices for the area at more than £2,000 per square foot. Although the recent hike in Stamp Duty is taking time to be absorbed into the market, it remains a significant factor both to a purchaser and conversely to vendors considering moving or trading up.’
‘However, such has been the flurry of buyer demand since the Election we would be confident in assuring anyone thinking of selling in the Borough that they would be able to command a price that would comfortably include any Stamp Duty costs into the overall purchase price owning to the highly competitive nature of the current market, ‘Patterson added.