2014 brought some big changes to the luxury property market, most notably with the introduction of new stamp duty rules and bans on huge, expansive basements. The New Year is bringing speculation about what will happen in the sector over the next 12 months. At the top of the agenda is the fear that a mansion tax will be introduced requiring people with properties valued at over £2 million to pay an annual tax. On top of this there is also the usual uncertainty associated with the General Election.
Predictions are already starting to come in about what is expected for property prices at the top end of the market. Some agents are optimistic and expect prices in Central London to rise as much as 10%. Others are a little more conservative thinking the rises could be around 2%. If a mansion tax comes in the ultra-prime market is expected to shrink, with Savills thinking properties could lose as much as 5%.
One of the positives for the luxury property market is that a number of high profile developments are set for completion this year. These will undoubtedly create interest as people strive to get a look at the latest incarnations of luxury living. There are several projects to take your pick from including The Glebe, Park Crescent and 1-5 Grosvenor Place, each offering something special and unique.
The two hottest areas in London for the prime market in 2015 are W2 (to the north of Hyde Park) and Greenwich. There are plans in place for both areas with work due to start on many projects this year. A £1 billion project to transform Queensway’s Hyde Park side is amongst the most impressive.
Perhaps the most impressive predictions for the coming year is that the luxury market will see more attention from British buyers, particularly following the results of the General Election. Demand will remain largest from overseas including Russia, Africa and China but the number of home based buyers joining the hunt for luxury homes is expected to grow.
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