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05/09/2012

Demand for un-modernised - sales market comment



There is no doubt that the excitement and focus of the Olympics has increased interest in London from overseas investors most notably properties up to £2,000,000.  These are classic investment buyers who are consciously purchasing below £2,000,000 to avoid the higher SDLT threshold.  

The consultation period with regard to the impending ‘mansion tax’ and capital gains tax charges on company held properties has now finished and it is obvious that many of our clients are reconsidering the structure in which their properties are held.  

While we have already seen some company held properties coming to the market as a direct result of the impending capital gains tax, we do not expect a ‘glut’ and we believe that many will simply be transferred into individuals names rather than sold. It certainly seems to be the government’s wish that London property investment should not remain a ‘tax free zone’, particularly with regard to gains made during a continually buoyant market.  

The appetite for investment in central London, in spite of the above, is still apparent as shown by two recent sales during August, one an un-modernised family house with a double garage in Knightsbridge and the other a charming double-fronted corner property in the heart of Belgravia, both of which required full modernisation.   

Both our flat team and investment/development department have remained busy with enquiries for un-modernised property and the rates per square foot attributed to such properties once developed, are ever increasing.  

Sentiment remains strong which bodes well for a strong market during the autumn.



Richard Barber - Partner. Tel: 020 7306 1624. Email: rbarber@waellis.co.uk


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