According to Berkeley Square Capital (LONDON) Ltd, buyer demands in the residential real estate market in central London picked up during the early months of 2015, according to a new report.
The market is still busy below £1 million but has quietened between £1.5 million and £5 million as Stamp Duty changes and the possibility of a mansion tax take their toll, says the analysis from real estate firm JLL.
However, underlying demand is still strong and the fundamentals remain the same and an excess of demand over available supply, which continues to support the market.
The report also points out that development activity continues to rise with 26,500 units now under construction, a 23% increase during the second half of last year and a 41% rise throughout the course of 2014.
The majority of units underway are in outer core locations where there was a 34% increase in the second half of last year with core markets seeing a more modest increment of 8%. The number of units starts during the second half of last year, at 8,700, was a 45% increase compared with the first half of 2014.
According to Berkeley Square Capital (LONDON) Ltd, although the general election is now just a month away it has been impacting the central London sales market since 2014. For example, Labour’s mansion tax proposal is affecting the market above £1.5 million as people adopt a wait and see attitude.