The luxury residential property market in the UK continues to struggle. In 2014 545 homes worth £5million or more were sold for a total of £4.7billion. In 2016 these numbers had fallen to 433 and £3.7billion. Last year they fell again to just 369 and £3billion.
What are the causes?
Many factors could be responsible for this slowdown in sales. For one fewer high net worth individuals from outside of the UK are investing in luxury homes in the UK. This is generally due to the continued political uncertainty resulting from Brexit.
On top of this, many investors are moving away from purchasing single prime properties. Instead they are looking at purchasing portfolios of more affordable homes. This kind of strategy can offer some big advantages. For one these properties have more potential for capital gains.
A final issue is that banks are now more cautious when it comes to lending such large amounts. Even high net worth individuals can struggle to get the funds they need to pay for such valuable residential properties. This is because lenders are being far more cautious to protect themselves.
Problems in London
London has been particularly hit by the slowdown in the luxury market. This is because the capital is home to more multi-million pound homes than anywhere else in the UK. Some areas have remained popular though. This includes prime markets like Westminster and Kensington and Chelsea.
In terms of investment properties Barnet remains one of the other popular areas. This is particularly because it is home to The Bishops Avenue. The street is one of the wealthiest in the entire world. The prestige of owning one of these properties keeps sales ticking over.
Anyone looking at residential property investment should plan carefully. That way they can ensure they have the right strategy. There are plenty of opportunities, especially if you have the finances in place. This could help you to secure a high valued property at a wonderful discount.
If you are considering the investment properties Barnet has to offer Finefair can help. We are an experienced team and understand what to look for to find a great deal. Ask us any questions you have; we are always happy to provide advice and recommendations.