Letting Agents Clapham | Mortgage analysis – Experts predict zero growth in prime central London property in 2013
http://bit.ly/13u45hJ
Letting Agents Clapham | Mortgage analysis – Experts predict zero growth in prime central London property in 2013 Unlike other schemes for guaranteed rent , we also guarantee you a no void period and we also provide our property management services to you completely free of charge. With our rent guarantee scheme there are no commission fees, no admin fees and no management fees to pay. The performance of the UK property market was disappointing in 2012, with growth of just 1 per cent by the Land Registry’s measures. Strong growth in London and the South-east helped to offset falls in much of the rest of the UK. But the generally dependable growth rates demonstrated by the prime central London market in recent years may be on the brink of retreat as property specialists claim tax reforms could hit the market in the coming year. Looking ahead to 2013, economists are forecasting low growth in the capital. Letting Agents Clapham Prime central London house prices rose 9 per cent in 2012, bringing growth to 34 per cent since 2009, according to property specialist Knight Frank. Such has been the impact of rising property values in central London that the influence started to spread to neighbouring boroughs. In prime outer London markets, covering Wandsworth to Richmond, and Hampstead and Canary Wharf, prices rose by 5 per cent in 2012, a 13 per cent increase over the past three years. Knight Frank, which currently places the UK in the middle of the longest housing market recovery on record, says it expects the prime central London market will undergo no further price moves in 2013. It attributes this impending slowdown primarily to tax changes; namely the introduction of a 7 per cent stamp duty rate on properties valued at £2m or more in March as part of the Budget, accounting for a vast swathe of central London properties. This view is shared by property agents Savills, although its research shows the prime central London market has already started to slow. It says growth slowed to 5.3 per cent in 2012, down from 14.2 per cent in 2011. While prime central London growth amounted to 3.7 per cent in the first quarter of 2012, it totalled just 1.5 per cent in the final three quarters of the year, a point which Savills says markedly emphasises the effect of tax reforms outlined in March’s budget. World research director Yolande Barnes says: “Buyers should now expect price growth to hover around zero in 2013, particularly as the prime central London market absorbs the impact of increased taxation. “We were predicting a slowdown even before this although it has proved to be the catalyst because of the very high growth which had already been seen and the prognosis for financial sector and city jobs worsening significantly.” Nationwide chief economist Robert Gardner suggests an improvement in the overall situation in the eurozone could also present a contributing factor since the prime central London market has benefited so prominently from foreign capital inflows. He says: “Part of London’s outperformance is reflected in safe havens of money flows from the eurozone, which has disproportionately benefited London, especially the top of the market. Whether or not that is maintained over the next year will depend on the developments in the eurozone and the market stability of other EU states.” But Collieus Interna-tional associate director on residential Joe Burgess says the demand from overseas, particularly that from outside the eurozone, is expected to remain strong in the foreseeable future. Letting Agents Clapham He says: “We are still seeing demand for London remaining very strong. We are getting more investment from overseas in the form of organisations looking both to redevelop and individuals looking to invest. There is definitely some strong appetite for London. It is seen as a haven, almost the real estate equivalent of gold.” This view is shared by Barnes who also does not expect the slowdown to extend beyond 2013. She says it was the uncertainty of the stamp duty increase which affected sales. She says: “After uncert-ainty post-Budget, we expect overseas buyers such as Middle Eastern and Commonwealth of Independent States nationals to build the extra cost of ownership in London into their calculations, now that tax changes for properties over £2m have been crystallised.” Letting Agents Clapham Barnes forecasts renewed growth from 2014 onwards, totalling 25.6 per cent by 2017. SPF Private Clients chief executive Mark Harris says that while demand for prime central London properties valued at between £2m and £5m could be affected by the stamp duty reforms, the super prime market, accounting for properties valued at between £5m and £10m, will continue to strengthen, contributing to overall growth rates. He says: “The prime markets which are perhaps more mortgage-reliant will be fairly flat, perhaps 1 per cent to 3 per cent growth. “Our view is that the super prime market will continue unabated as it appears to defy logic. Billionaires buying property will not be put off by paying 2 per cent stamp duty. If London is safe, stable and transparent then people will continue to buy. “The debt market, for those who want debt, at the top end is very well supplied. We have over 40 banks we are engaged with that are prepared to write credit over £5m, having added 10 new lenders over the past 12 to 18 months.” View the original article here 3Let allows you to guarantee your rent for a term of 1 to 5 years. Contact Guaranteed Rental today on 020 8694 8098 to find out more.
http://bit.ly/13u45hJ
Letting Agents Clapham | Mortgage analysis – Experts predict zero growth in prime central London property in 2013 Unlike other schemes for guaranteed rent , we also guarantee you a no void period and we also provide our property management services to you completely free of charge. With our rent guarantee scheme there are no commission fees, no admin fees and no management fees to pay. The performance of the UK property market was disappointing in 2012, with growth of just 1 per cent by the Land Registry’s measures. Strong growth in London and the South-east helped to offset falls in much of the rest of the UK. But the generally dependable growth rates demonstrated by the prime central London market in recent years may be on the brink of retreat as property specialists claim tax reforms could hit the market in the coming year. Looking ahead to 2013, economists are forecasting low growth in the capital. Letting Agents Clapham Prime central London house prices rose 9 per cent in 2012, bringing growth to 34 per cent since 2009, according to property specialist Knight Frank. Such has been the impact of rising property values in central London that the influence started to spread to neighbouring boroughs. In prime outer London markets, covering Wandsworth to Richmond, and Hampstead and Canary Wharf, prices rose by 5 per cent in 2012, a 13 per cent increase over the past three years. Knight Frank, which currently places the UK in the middle of the longest housing market recovery on record, says it expects the prime central London market will undergo no further price moves in 2013. It attributes this impending slowdown primarily to tax changes; namely the introduction of a 7 per cent stamp duty rate on properties valued at £2m or more in March as part of the Budget, accounting for a vast swathe of central London properties. This view is shared by property agents Savills, although its research shows the prime central London market has already started to slow. It says growth slowed to 5.3 per cent in 2012, down from 14.2 per cent in 2011. While prime central London growth amounted to 3.7 per cent in the first quarter of 2012, it totalled just 1.5 per cent in the final three quarters of the year, a point which Savills says markedly emphasises the effect of tax reforms outlined in March’s budget. World research director Yolande Barnes says: “Buyers should now expect price growth to hover around zero in 2013, particularly as the prime central London market absorbs the impact of increased taxation. “We were predicting a slowdown even before this although it has proved to be the catalyst because of the very high growth which had already been seen and the prognosis for financial sector and city jobs worsening significantly.” Nationwide chief economist Robert Gardner suggests an improvement in the overall situation in the eurozone could also present a contributing factor since the prime central London market has benefited so prominently from foreign capital inflows. He says: “Part of London’s outperformance is reflected in safe havens of money flows from the eurozone, which has disproportionately benefited London, especially the top of the market. Whether or not that is maintained over the next year will depend on the developments in the eurozone and the market stability of other EU states.” But Collieus Interna-tional associate director on residential Joe Burgess says the demand from overseas, particularly that from outside the eurozone, is expected to remain strong in the foreseeable future. Letting Agents Clapham He says: “We are still seeing demand for London remaining very strong. We are getting more investment from overseas in the form of organisations looking both to redevelop and individuals looking to invest. There is definitely some strong appetite for London. It is seen as a haven, almost the real estate equivalent of gold.” This view is shared by Barnes who also does not expect the slowdown to extend beyond 2013. She says it was the uncertainty of the stamp duty increase which affected sales. She says: “After uncert-ainty post-Budget, we expect overseas buyers such as Middle Eastern and Commonwealth of Independent States nationals to build the extra cost of ownership in London into their calculations, now that tax changes for properties over £2m have been crystallised.” Letting Agents Clapham Barnes forecasts renewed growth from 2014 onwards, totalling 25.6 per cent by 2017. SPF Private Clients chief executive Mark Harris says that while demand for prime central London properties valued at between £2m and £5m could be affected by the stamp duty reforms, the super prime market, accounting for properties valued at between £5m and £10m, will continue to strengthen, contributing to overall growth rates. He says: “The prime markets which are perhaps more mortgage-reliant will be fairly flat, perhaps 1 per cent to 3 per cent growth. “Our view is that the super prime market will continue unabated as it appears to defy logic. Billionaires buying property will not be put off by paying 2 per cent stamp duty. If London is safe, stable and transparent then people will continue to buy. “The debt market, for those who want debt, at the top end is very well supplied. We have over 40 banks we are engaged with that are prepared to write credit over £5m, having added 10 new lenders over the past 12 to 18 months.” View the original article here 3Let allows you to guarantee your rent for a term of 1 to 5 years. Contact Guaranteed Rental today on 020 8694 8098 to find out more.
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