We hope you enjoy our latest newsletter as much as we have enjoyed preparing it.What a European Convention we had last month in Palma de Mallorca.The best ever !
For the 5th year my team and I met with our colleagues from Luxembourg, France , Switzerland , Greece , Austria , Holland, Germany, Spain, Portugal , Roumania, Hungary, Finland , Canada etc. Basically 1200 of the best agents from over 60 countries.
Today , after Berlin (2015) , Rome (2016), Lisbon (2017), Amsterdam (2018), I can say we have not only built reliable relationships with our colleagues but a friendship with some of ”our friends “, by attending the last 5 annual Conventions as the REMAX London Ambassador for REMAX Europe !
On the business side , we are , despite the “Brexit ” uncertainty , getting regular quality selective REFERRALS for International Buyers, Sellers , Investors and companies relocating to London.
And this will continue with Las Vegas in March for the Worldwide REMAX Convention 2020 !
Our Team went to the 2019 EUROPEAN CONVENTION !
Click to watch the video of
the European Convention 2019 !
Follow on our Facebook page our adventure in Palma de Mallorca to share ideas and experiences with the best Agents in the industry, and build relationships that will give our clients’ exposure internationally!
£ 1.6 Million 3 bed flat in Holland Park , Kensington, London
Just Sold stc
3 main Estate Agencies had this property for over 4 months with no offer !
When Re/Max took over as a Sole agency :
within 4 weeks + 2 Open Houses we had 2 Offers !
4 weeks later an “Agreed offer” and exchange & completion the following month.
Properties to Let Increasingly Held by Overseas Landlords
Shifting trends in the property market have led to a growing number of properties being let by overseas landlords in Great Britain, according to a new report by estate and letting agent Hamptons International.
The report found that the proportion of homes held by overseas-based landlords grew to 11 per cent in the first 10 months of 2019, up from a share of seven per cent during the same period in 2018, which was considered to be a record low at that time.
Leading agents revealed that the growth in interest from overseas investors this year had been the first year-on-year increase since records began in 2010, when 14 per cent of homes were let by non-UK based landlords.
London remains most attractive
London was found to be the most popular destination for foreign investors, with 18 per cent of properties belonging to landlords from overseas.
The increase in demand from investors outside the UK marks a significant turnaround in sentiment, after almost a decade of waning foreign investment.
In December 2018, Linklaters released a report on foreign real estate investment in the UK, in which it revealed that demand was particularly strong from Asian investors from countries including South Korea. They estimated that Asian investors held £3.6 billion worth of bought property in London alone in 2018.
Weak currency boosts demand
A weaker Sterling was likely to be responsible for the increased demand from foreign investors. Sterling’s marked weakness against the US Dollar since 2014 resulted in a price discount of several tens of thousands of pounds for the average property across Great Britain as a whole.
Aneisha Beveridge, head of research at Hamptons International explained: “Sterling’s depreciation has made investment property in Great Britain more attractive to international investors. The average home cost 23 per cent or £53,065 less than in 2014 for a US dollar buyer, solely due to the currency changes.”
This depreciation discount gave London an advantage compared to all other regions, as the discount in the capital was even higher, at £107,030 for the average property.
This higher discount came at a price, as average London house prices stood at £469,640 in October, and the average Stamp Duty bill (including the three per cent surcharge on second homes) was £27,570 for the average home.
Despite this, the report added that in many cases, price discounts were sufficiently large enough to absorb the cost of any additional three per cent Stamp Duty surcharges on second homes.
|Average property price in Central London|
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London’s Prime Property Market Sees Increased Activity
Sales activity in London’s prime property market picked up in the third quarter of 2019, growing 10.3 per cent, but prices continued to fall, according to a new Prime Property Index by Coutts.
The accelerating sales activity in London’s most expensive neighbourhoods was the fastest quarterly gain Coutts had recorded since the end of 2017.
Coutts suggested this acceleration in activity was taking place because sellers had run out of patience and that demand was strong, particularly from foreign buyers, attracted by a weak pound.
Despite a rapid rise in the third quarter, sales volumes remained 27.8 per cent lower than their peak in 2013.
Headwinds for prime market
Coutts added that there had been a notable slowdown in the sale of homes in homes priced over £5 million, which it attributed to proposed changes to Stamp Duty. The proposals involve reducing the top rate of the tax from 12 per cent to seven per cent.
At present, homeowners begin to pay the 12 per cent top rate for homes worth £1.5 million or more. A reduction in the top rate for homeowners in this price bracket would enable them to make additional savings.
Prices continue to deflate in London
Prices in this high-value market fell by 0.8 per cent between the second and third quarters of 2019, meaning these homes had seen price gains of 0.4 per cent since September 2018. Taking a longer-term view, prime London property prices were 15.2 per cent below their peak in mid-2014.
Coutts identified an apparent mismatch between the expectations of buyers and sellers, finding price discounts of 15.2 per cent on homes dubbed ‘super-prime’ properties, or those valued at £10 million or more.
However, for prime properties as a whole, the average price discount was closer to 10.3 per cent below asking price, having narrowed over the past two years. Coutts believed this suggested buyers and sellers were reaching a consensus on fair valuation levels.
The index from Coutts comes two months after London Central Portfolio reported that buyer momentum was building in the prime property market during the summer, as prices remained high and demand exceeded supply.
Boris Johnson UK Prime Minister suggested a reduction in the top rate of Stamp Duty back in the summer
With a general election campaign now underway, investors will need to wait until after 12th December, to see whether Mr Johnson will be in a position to command a majority, before a budget or any policy proposal is presented to MPs.
On 11th November, Brexit Party leader Nigel Farage revealed that his party would not stand in the 317 seats the Conservatives had won in the previous election, having previously intended to field candidates in over 600 constituencies across the UK.
Such a tactic is intended by Mr Farage to limit the chances of splitting the vote with the Conservatives in those seats and reduce the chances of anti-Brexit MPs being elected instead.
TOP 10 WAYS
TO ADD VALUE TO YOUR HOME IN LONDON
Whether you’ve just bought a property, or are looking to sell, it pays to consider how any home improvements could add value to your home.
It is worthwhile having your property valued with a local agent before carrying out any major works, as we will be able to advise you of ceiling values in your area.
Below is a list of some of the most value-adding renovations to a home, according to the website Property Price Advice:
- Cellar conversion: 30%
- Split house into flats: 30%
- Garage conversion: 15%
- Kitchen side-return extension: 15%
- Loft conversion (extra bedroom): 15%
- Conservatory: 10%
- Planning permission: 10%
- Smarten up kerb & garden areas: 10%
- New bathroom: 3% – 5%
- Make living room open-plan: 3% – 5%
Source: Property price advice – February 2019