There were some significant developments in the property markets in the five most expensive central boroughs in London last year. According to figures from LSL Property Services, prices were down across Kensington and Chelsea, Westminster, Hammersmith and Fulham, and Islington. The only exception was Camden, where prices in November 2015 were up 7.4% on the figure from 2014.
Figures from online estate agent emoov.co.uk also show that Camden retains its popularity with buyers. Their research shows that in the year to January 2016 the average asking price of a property in the borough had risen from £983,162 to £1,108,489, making the area one of the most valuable in Greater London.
The increase in house prices makes the area highly desirable for investors, even with the introduction of an additional surcharge in April. The 3% charge will be added on top of stamp duty, leaving investors facing a higher bill when they purchase buy to let properties and similar assets that won’t be their primary home. From the 1st of April, rates for second homes will be as follows:
- 3% for properties valued at less than £125,000
- 5% for £125,000 to £250,000
- 8% for £250,000 to £925,000
- 13% for £925,000 to £1.5 million
- 15% for over £1.5 million
The higher tax could deter some people from purchasing but if the growth in prices continues at the same rate the potential returns will still be very healthy. The fact that there is high demand for rental properties in Camden is a big attraction too. Buy to let investors can enjoy excellent returns on their property and will have an asset that will hopefully continue to increase in value until you decide to sell.
If you are looking at Camden for investment opportunities we would be happy to offer advice. We support investors throughout London and help them to make the right moves in the market. We can offer a full range of services including portfolio management, property and block management, and private lettings, to name just a few of the areas we deal with. Whether you have a single rental property or a number of them, we can help you to explore every opportunity for growth and improvement.