£1 Billion Worth of Luxury Property Deals Exchange Hands after the UK General Election
Property agents have described the last minute dash after the General Election to complete sales of luxury properties as the day golden deals really took them by surprise. It was the best possible outcome for those dealing in high-end property as a torrent of new deals gushed in resuscitating a flagging house market.
In around seven days the luxury property market in the UK is believed to have seen £1 billion exchanging hands as serious offers went down. Yet, this is only a small part of the deals a discreet number of agents are talking about.
Interest for the UK General Election spread across the world and some of the ultra rich and high networth people around the globe were waiting to see how the election would go. However, just after the results were confirmed interest in the English capital was very clear; London is now being seen as the number one city in the world not just to live, but also to invest in. Most property agents had started receiving lots of calls on buying property in London, a couple of hours after the world had woken up and internalised the results.
For 10 years the luxury property market in England had been going up except for the little dip back in 2008 financial crisis but slowed down considerably in the last months of 2014 due to the expected General Election.
Lots of homes were taken off the market by vendors waiting after the election with lots of penthouse apartments and townhouses rented rather than being sold. As a result, buyers had only window shopped, refusing to commit since a Labour government had promised to impose a yearly mansion tax on homes valued over £2 million.
On May 7 from about 10pm UK time as poll stations closed and exit poll announced, the luxury property market entered into a new phase, hitherto unseen before. Wealthy buyers went on their phones calling solicitors and agents as they tried to force property deals to go through to avoid a spike in property costs after the election.
In contrast with the spike that followed George Osborne’s stamp duty overhaul in December 2014, the property industry is expecting that the election boost on luxury house deals will last longer.
In central London there are reports deals worth £30 million were processed in about 24 hours following the generation election. For other estate agents, dry spells before the election were shattered by million pound deals finalised immediately after the announcement of the election’s outcome.
The result was highly welcomed as the property activity in London’s prime areas returned to their highest levels and perhaps will surpass past levels. Lawyers, investors and property agents are not the only people happy that the Tories took the day. Financiers and bankers will also benefit, since they will be performing under a Conservative government not interested in capping bonuses. Newbuild tower apartments with a quick and easy access to Central London are expected to be bought fast and handsomely.
Property sellers believe the golden age for residential in the capital’s high end areas is something buyers need to take rapid advantage of; they are predicting an increase in demand that will see the properties available dramatically diminishing.