The prices of Luxury house properties in London has increased by 2.1 % currently in the month of December 09 and it has achieved the status of strongest estate market among UK markets as per the current reports.
The effect of latest bonus tax levied on the banks shall have least effect as indicated by comments by international consultants about Prime Central index London.
As a consequence of the announcement of Bonus Tax there were many transactions in the range of £800,000 to £1 million prices of which fell down immediately a temporary effect thereafter the prices have improved. Good number of new transactions has been recorded at higher prices in the same week.
Increasing Trend of Prices:
In all prices have increased by 13.8 % after March 09. These are still at a low level, as compared to March, 2008. The particular areas, which are strongest are located at Chelsea, Kinsington and Knights bridge with recording 3 % increase as compared at prices of last month level.
Residential property market got revived by an excellent upward movement of prices in 2009. There was increase of buyers by 25 % during the year 2009 in comparison to 2008. This is due to buyers from Russia, Europe among Italy was a major contributor. There were buyers from Middle East countries also.
The latest months’ reports indicate prices of very expensive properties in the range of £5 million to £10 million and more have witnessed positive increase in the prices touching 2.6 % price growth. The beginning was marked in £2.5 million price tag market during the period of spring.
Role of Foreign Buyers:
There has been substantial rise in inward investment from foreign buyers, primarily with interest to take advantage of weak pound and presence of overall lower prices. Influenced by economic improvement of the city, there has been increase in the traditional buyers also routing their transactions through local bankers, availing finance from hedge funds and playing of private equity houses again in the market.
The summarized account of the year about to end, it shall be ending with positive results i.e. demand of new buyers has registered an increase of 25 % however the supply is closing at 18 % increase.
The Bitter Competition:
The investors and occupants of properties are in a tug of war in competition to find the best properties, due to the supply position not up to mark, there is competition in bidding amounts.
If the market is looked from short term prospective there is a positive note. For long term there are many factor influencing it like the out come of election and declaration of emergency budget.
The UK market is likely to have suffering outcome at high end as well as entry levels as a result of certain measures Government revealed in its pre-budget announcement
Bank Bonus Hitting Market:
The UK property market will suffer at the high end and at entry level from measures announced by the government in its pre-budget statement, it is claimed.
There warnings about ten thousands of potential sales shall end half way due to duty holiday scheme ending on 1st January 2010. Effectively there shall be old level of tax shall be restored at the same time the effect of bonus tax on banks shall also affect these properties in the beginning of next year 2010.