 |
|
|
|
|
|
|
|
 |
|
|
| EMP Marketing |
|
|
|
| |
|
| |
The super-prime property market |
| |
HOME >> NEWS >> The super-prime property market |
|
|
 Non-doms are ready to fly away but bonus-rich City buyers may take their place in the housing market
This should have been a cracking year for wealthy homeowners. While momentum has drained from the mainstream property market - diluted by the sudden shortage of credit and faltering confidence - prospects have remained sunny for the most expensive London homes, perennially popular with wealthy foreign buyers.
Until now. Just six weeks into 2008, super-prime property is starting to look vulnerable. Alistair Darling has backtracked on some plans to tax non-domiciled UK residents, but he is sticking - for now - to his promise to levy a £30,000 charge on “non-doms” who have lived in Britain for seven years. It also seems that UK homes owned in overseas trusts - a common arrangement - will no longer enjoy capital gains tax exemption. Whatever the outcome, non-doms are taking no chances, and their caution may be the biggest threat yet to the resilience of the prime London property market.
Last year, interest from US buyers was up by 187.5 per cent, according to Hamptons International. Now, it's a different story. Ed Mead, of Douglas & Gordon, says: “I have two American clients who are selling because of these changes. If you multiply that by every agent, that is a lot of people. At best, this does not help the market; at worst, it is a disaster.” Lulu Egerton, of Strutt & Parker Lane Fox, agrees: “I have five European clients who are now going. Who can say what number of people will have gone in two years?” Daniel Wiggin, of WA Ellis, adds: “The worst effect will be among the mid-range of foreign residents, not just the very wealthy. We have had several instances of non-domiciles who want to sell.” Even after the changes this week, some agents fear that the damage may be done. Jonathan Hewlett of Savills said: “A layer is mistrust has been created.” Peter Wetherell of Wetherell said: “£30,000 today can still become £50,000 tomorrow. People are still wary.”
Price growth in prime London has already slowed from 37.9 per cent in August to 26.2 per cent this month, according to Liam Bailey, of Knight Frank. But he and Lucian Cook of Savills believe the short supply of homes will continue to sustain prices. “We do not expect to see an exodus of overseas buyers sufficient to unbalance the market,” Cook says. So what homes will remain attractive? Savills (020-7590 5065) is selling the penthouse at 10 Palace Gate, Kensington - a suitably rare trophy to tempt a jetsetter. In a Grade II* listed Modernist building designed by Wells Coates, the two-bed £7.5 million penthouse has been tastefully fitted out by a respected developer, Richard Collins. There is a ground-floor apartment for staff and a vast terrace with views of the Albert Hall.
But Savills expects the most resilient prime property to be substantial family homes close to the smart schools of southwest London. For example, a new £5.25million house on Sheen Common Drive, near Richmond, is likely to appeal to both wealthy locals and international moneymen. Sheen is not an area that screams glamour but - crucially for buyers in the £5 million-plus price bracket - it is safe and private.
Invisible from the main street, The Birches, named after a pretty clump of trees in the front garden, nestles behind electric gates. For sale with Knight Frank (020-8939 2800) and Jackson-Stops & Staff (020-8940 6789), it's a large cedar-clad bungalow with funky angled roof sections, neat lawns and a good deal of decking. The drawing room is like a huge ski chalet, with a sloping ceiling, a lot of pine and steps leading down to a central sitting area and fireplace.
It's all rather indulgent. The main bedroom's en suite bathroom is designed for sharing - double sinks, a double-headed shower and an egg-shaped bath with central taps for comfortable dual-reclining. However, only one incumbent has a view of the wall-mounted TV - and there's only one lavatory.
James Devas, representing the developer Fitzroy, says that there is still demand for luxury houses in the area. “An overseas buyer from Russia or the Middle East is the most likely, as local families are tending to be cautious but foreigners can buy on a whim.” But Andrew Silver, the managing director at Fitzroy, thinks homegrown buyers are just as likely: “There is a high level of local demand from City people and quite a few entertainment people too. It's a bit cautious but the demand is still there.”
Even if Mr Darling does scare off non-doms, the City may hold firm. Bonuses may be down, but signs of life are discernible: Hamptons this week reported a stream of City bonus purchasers registering to buy in London and Investec launched a mortgage for those buying a home with bonus cash. Such a deal isn't the first, but for those longing to see some life back in the London property market, it is unlikely to be the last.
Source: property.timesonline.co.uk |
| |
|
|
|
International Corporate Governance
This issue explores how governance attributes are directly related to the substantial variation - across both countries and companies - in ownership, investment and valuation. |
|
|
|
|
|
|
|
|
|
|
|
|
|
