Uncertainty in election run-up affects ‘sub £2m’ market
STRUTT & Parker’s data for the second quarter of 2014 shows signs of uncertainty in the Prime Central London (PCL) market, with the number of transactions in the sub £2 million market down by -17.2 per cent on the same quarter last year.
The £5 million plus market fared much better, with an increase in transactions of 18.6 per cent — while the £2 million to £5 million bracket stayed relatively stable at -0.5 per cent. Stephanie McMahon, head of research at Strutt & Parker, said: “The drop in values and volumes in the sub £2 million market has come as somewhat of a surprise.
“That said, the PCL market is volatile and those buying around the £2 million mark are becoming increasingly nervous of the election in eight months’ time.”
She continued: “Having said this, the whispers of mansion tax and the on-going geopolitical issues seem to have had very little effect on the PCL sales market in the £2 million to £5 million category.”
Overall sales are down — a total of 828 homes were sold during the second quarter of 2014, which was an -8 per cent decrease over the quarterly average. However, overall prices continue to creep up as transaction values increase — there was a 10 per cent increase in the value of homes sold during the second quarter.