Despite the threat of a Mansion Tax disappearing with Labour’s political presence, demand for property over £2m in London’s most prestigious boroughs, has fallen by 3% overall since the start of May.
eMoov’s latest data shows the lack of impact the election result and a Tory win has had on the market. The data shows that demand in more than 60% of the PCL market is still falling, with St Johns Wood the worst affected dropping by -37% in a month. Amongst the other boroughs worst affected are Mayfair (-29%), Belgravia (-23%), Notting Hill (-21%), Chiswick (-20%), Knightsbridge (-15%), Chelsea (-10%), Fulham (-9%), Islington (-4%) and Kensington (-3%).
Research released today by Hometrack confirmed the drop, with figures showing that prime central London is currently running at 1.6% compared to 10.1% for all London.
However some areas of the PCL market have seen demand increase, most notably Primrose Hill where demand has increased by 264% over the course of a month. Other areas that have benefitted since the election are Fitzrovia (+93%), Belsize Park (+26%), Maida Vale (+12%), Marylebone (+8%) and Holland Park (+6%).
Founder and CEO of eMoov, Russell Quirk, commented:
“The PCL market is still a graveyard, albeit a pretty one. It’s interesting to see that pre-election (February to May) demand was actually higher, than it is now the outcome has been decided.
"I don’t think the threat of a Mansion Tax disappearing has done much in the way of restoring the market. People just aren’t buying throughout a lot of London, let alone the £2m+ market and many boroughs have seen a decline.
"I don’t think that there is many that will shed a tear for the well-heeled, sharp suited Mayfair type property predators. They have long crawled along the golden streets of prime central London, yet it seems that the tide has turned with volumes of stock collapsing and high end businesses teetering on the brink of financial ruin.
"Given the colossal fall in demand, it could be several years before the PCL market recovers. Probably even longer before this demand drives prices back to the grossly inflated heights of 2013/14.”
