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Telegraph
25-06-2025
- Business
- Telegraph
Five reasons not to write off buying in London
I don't have to think too far back to remember the golden years of the London property market, when prices went up each year, sealed bids and gazumping were everyday occurrences, and landlords snapped up the city's property for investment. Buying in London wasn't just desirable, it was smart. But as several Telegraph articles have recently pointed out, fast forward just over a decade to today, and London's status as a 'safe bet' investment location has taken a serious knock. People are often surprised to hear that the price peak of the prime central London property market was in 2014, and most buyers since then have seen little or no price growth. Many who are trying to sell today will have made a loss once their stamp duty costs are factored in. This can be put down to a perfect storm of factors, including Brexit, which led to transaction volumes falling off a cliff overnight; stamp duty hikes, particularly the surcharge for second homes and overseas buyers; and more recently, higher interest rates and the scrapping of non-dom tax status for global ultra high-net worth individuals choosing to reside here. It isn't hard to see why demand for London property has declined. Yet, despite a decade of turmoil, London continues to top the list for buyers around the world – because where people choose to live, and why, is rarely a numbers game alone. 'There's only one London' On a recent property viewing tour with an American buyer, we were discussing why he was choosing to buy and base himself in London versus other global cities. After running through the pros and cons, he shrugged and said, 'But at the end of the day, there's only one London.' This sums up how a lot of people feel about the lifestyle, culture and quality of life here, which you just can't find anywhere else. For example, if you're coming from the east coast of America, which is known for its cut-throat work culture, the more generous work-life balance offered by most London-based companies can be very appealing. Safety and the comparative lack of gun crime here is another significant pull factor. Buyers moving to London from locations such as Dubai often arrive at the start of their children's secondary education, because they value the diversity of London and the opportunities for children to become independent and streetwise, rather than growing up in a bubble served by an army of household staff. The pull of top schools Schooling is always the top priority for family buyers, and there's still a real cachet in saying your children are being educated in the most prestigious London schools. These institutions are so in demand globally that many have opened outposts around the world – Harrow's first US outpost is set to open in Long Island in September, and I believe another is considering an expansion into San Francisco. One successful British banker told his wife that he wanted to move back to London to educate their son in the UK, and his American wife said she would agree to move 'if he bought them a big house and got their son into Eton'. Tax isn't the defining factor While many of the country's wealthiest continue to leave the UK for more favourable tax regimes elsewhere, the picture is nuanced and certainly not everyone is going. Of our own high net-worth clients, we have found that so far just one in 10 have made the move out of the UK, a similar conversion rate to what many private bankers and tax advisers are citing. When it comes down to it, many are choosing to pay the additional tax for various reasons. For example, one of our clients wanted to move to Monaco, but his wife didn't want to be away from their London-based grandchildren. She told him if he moved to Monaco she would divorce him, and he would have to pay a big divorce settlement, or they could stay in London and he could pay a big tax bill. He chose to stay. Even those who do leave are not abandoning the UK entirely. Another client told us about a golf WhatsApp group he has with 17 wealthy friends, where every one of them has left or is planning to leave the UK – but in every case, they will spend as much time as they possibly can in London, which in each of their cases is four months. They are not looking to turn their back on London, and in fact are keen to spend as much time here as their tax status will allow, because they still love it here. Trump 2.0 is driving a US influx London is also attracting a new cohort of buyers from across the pond. I was recently contacted by an American entrepreneur couple who have had a rental property in London for several years, and are now urgently looking to buy here because they are so concerned about Donald Trump 's second tenure as president. They said the conversation for them has moved away from 'Should we leave?' to 'When will we leave?', and they now want to base themselves in the UK as soon as possible. Recent changes to British citizenship eligibility allowing people to apply through their mother's heritage, is making this easier in some cases. Demand from companies is strong, too. Data from Knight Frank shows an 8pc annual increase in enquiries from companies seeking to relocate staff to the UK in April, indicating that the recent tariff turbulence and wider global political and economic uncertainty may have enhanced the UK's reputation as a safe and stable place to invest and grow a business. The fact that a third of all the buying clients we're working with currently are American – the highest it's ever been – supports this. Stamp duty is a one-off There's no getting away from the fact that stamp duty is incredibly steep for anyone buying a property in London, particularly those who are not UK tax residents and who already own a property elsewhere in the world. For them, the rate is now an eye-watering 19pc of the purchase price, and international clients are often shocked when we explain the figures to them before starting a search. But putting this into context, property tax in the UK is a front-loaded, one-off payment on completion of the purchase, and besides council tax, there are no ongoing property ownership taxes in the UK, as there are in many other countries. The 'mansion tax' mooted for several years by the Labour Party has not come to fruition, and London continues to sit at roughly the mid-way point when compared to buying, owning and selling a property in other global cities over a 10-year period. London is not the speculative investment opportunity it once was, but as a place to live, work, and raise and educate a family, there's a lot still going for it. People want to live here whether the value of their property goes up or not – and I can't see that changing.
Bloomberg
23-06-2025
- Business
- Bloomberg
London's Luxury Property Downturn Looks Set to Get Even Worse
When two Chinese investors bought a majority stake in a development dubbed 'Mayfair's most exclusive address' in 2015, London's housing market was booming. Almost 10 years and an insolvency later, half the apartments have yet to be sold. The travails of 60 Curzon are emblematic of what's been a miserable period for the city's prime property market, with prices down more than 20% from their peak. The downtrend is now being supercharged by the recent removal of a tax perk for so-called non-doms and an exodus of wealthy. For realtors, that's further thinning out the rolodexes of deep-pocketed clients on whom the luxury market has long depended.
Daily Mail
18-06-2025
- Business
- Daily Mail
EXCLUSIVE London property boom: Capital bucks trend with price rises as UK house values fall by 3% - use our interactive tool to see how much homes in YOUR area are worth
London homeowners have seen the value of their properties increase over the past month - despite a nationwide downward trend in house prices. UK property values suffered a month-on-month fall of nearly 3 per cent in today's House Price Index (HPI), which is the first time this year that prices have fallen. The average UK home was worth £265,497 in April which was down 2.7 per cent on the previous month but up 3.5 per cent compared to the previous year. Meanwhile the average London property was priced at £566,614 in April, following a rise of 2.6 per cent month-on-month, and a 3.3 per cent gain annually. The overall monthly price fall for the UK followed changes to stamp duty that came into force in April and piled more costs onto buyers, particularly on pricier homes. The data was analysed by online estate agents Purplebricks following the latest monthly HPI report from the Office of National Statistics (ONS) released today. The report will be welcome reading for homeowners in some of London's most expensive areas, which have seen months of continued price drops. Homes in upmarket Kensington and Chelsea saw prices surge by 9 per cent in a month - a gain of £123,815 on average to a new typical value of £1.34million. The City of London also saw a big rise of 7 per cent, adding £53,255 to the average property and taking the typical value up to £771,818. Westminster homes enjoyed an encouraging month too with an increase of 3 per cent or £28,408, to give properties a new average price tag of £946,923 on. But despite the monthly price rises, homes in all three of those London boroughs were worth less in April 2025 than the year before - with Westminster homes hardest hit, losing £144,879. Throughout the capital, 16 boroughs saw a month of price rises while ten areas saw a month-on-month loss. Seven areas of London saw no change. The biggest loser this month was located on the London-Essex border at Epping Forest, which saw a 4 per cent decrease amounting to £22,913 being knocked off property prices. While London had a prosperous month overall, homes in Hackney lost 3 per cent in value, the equivalent of £18,883. Despite it being a tough month for house prices in many parts of the UK, homes have seen an average value increase of £9,000 over the past year. BIGGEST ANNUAL GAINS: April 2025 v April 2024 Area Percentage increase YOY Money gained 1. Elmbridge 7% £56,121 2. Bromley 10% £52,067 3. Lewisham 10% £51,550 4. Cambridge 10% £51,060 5. Three Rivers 9% £50,141 6. Haringey 8% £49,637 7. Uttlesford 9% £46,583 8. Waltham Forest 9% £46,056 9. Kingston upon Thames 7% £41,578 10. Sevenoaks 8% £41,260 BIGGEST ANNUAL FALLS: April 2025 v April 2024 Area Percentage decrease YOY Money lost 1. Westminster -15% -£144,879 2. City of London -14% -£110,370 3. Hammersmith -11% -£82,731 4. Islington -10% -£65,487 5. Cotswold -8% -£32,155 6. Wandsworth -4% -£27,909 7. Camden -3% -£21,879 8. Newham -5% -£21,601 9. Hackney -2% -£14,162 10. Kensington and Ch -1% -£13,458 April marks the fourth consecutive month of annual price rises for UK properties. Since April 2024, homes have increased by 3.5 per cent over the last calendar year. House prices in England saw an annual rise of 3 per cent, making the average property worth £286,000; while Wales had a 5.3 per cent increase and homes stood at £210,000 on average. In Scotland there was a 5.8 per cent increase, putting a £191,000 on the average home. The HPI report also revealed there were fewer UK homes put up for sale in February this year, with nearly 7,000 fewer sold in February 2025 compared to the same time last year. Purplebricks sales director Tom Evans said: 'This small monthly decline is little more than a bump in the road - a stumble after April's stamp duty changes. 'One of the best investments you can make is in bricks and mortar, and most buyers are looking at the long-term when they sign on the dotted line. '2025 has so far been a great year for the market with continued price rises, which I predict will be back before long.' Robert Nichols, managing director of Purplebricks Mortgages, added: 'With 0 per cent deposits, the lowest mortgage rates in two years, the UK is a buyers' market right now. 'And, rising wages means there are more first-time buyers encouraged to put that all-important first foot on the property ladder. 'Movement at the bottom of the ladder will pay dividends in the long-run, promoting sales further and further up the chain - ultimately nudging prices up over time.'
Telegraph
03-06-2025
- Business
- Telegraph
Arab businesswoman sells Knightsbridge mansion for £28m
A Kuwaiti property tycoon has sold a £28m Knightsbridge mansion in one of the biggest London home sales so far this year. Fawziah Mubarak Al-Hassawi sold the 11-bedroom Princes Gate town-house overlooking Hyde Park to a Middle Eastern property billionaire, The Telegraph understands. The mansion last changed hands for £32.5m in 2019, according to public documents, and sold below its £30m asking price in the latest transaction. It comes amid a difficult period for the London property market, particularly at the top. Eighty-two per cent of prime London houses sold below their asking prices during the first three months of this year, according to Coutts. Stuart Bailey, at Knight Frank, which advised on the sale, said: 'London is good value, and international buyers, especially those that are property-savvy, are well aware and doing deals. This shows the mid to long-term security of London real estate thankfully beats short-term politicians every time.' The sale of Princes Gate is seen as a benchmark-setting deal for the top end of the market and may help to unlock other sales. The property features a large swimming pool, vaults, an industrial kitchen and two lifts. Measuring 16,000 sq ft, the town-house is located close to Harrods and the museums of South Kensington. Built in the late 1840s, the mansion was initially occupied by a railway developer followed by a succession of wealthy bankers and their families from the 1850s to 1941. Those included Robert Cooper Lee Bevan, who was influential in the development of Barclays Bank in the 19th century. Between 1949 and 1987, the house was the headquarters of the Royal School of Needlework, before it was refurbished as a single residence in the mid-1990s. Roly Ingleby-MacKenzie, head of Knightsbridge sales at Knight Frank, said: 'Given the turbulence in the market over the past 12 months, it is fantastic to see confidence returning, with buyers recognising London as a prime investment opportunity, especially at the top end.' Ms Al Hassawi is the daughter of the late Mubarak Al Hassawi, a Middle Eastern tycoon thought to be the first Kuwaiti national to build commercial and residential complexes in the country, taking advantage of a property boom in the 1950s. After he died in 2005, Ms Al Hassawi set up the Fawziah Mubarak Al Hassawi Group (FMH Group), which oversees £800m of developments in the UK, Germany and Spain. Al Mubarakia, its European arm, also owns and manages £300m-worth of properties around the world. This includes a 16th century castle in Baden-Baden, Germany, which was previously home to the margraves of Baden and now being turned into a five-star Hyatt hotel. Among the properties owned by Al Mubarakia in the UK is the historic Tobacco Dock in Wapping, east London.
Daily Mail
14-05-2025
- Business
- Daily Mail
Central London property prices have crashed and 'nobody wants to talk about it' warns buying agent
Home sellers in central London are facing a reality check that few of them want to accept - their properties may well be worth less than what they paid for them. While many estate agents continue to talk the market up, data suggests prime London property is struggling. Several central London boroughs have seen prices fall by more than 20 per cent within the last four years, with one borough seeing its house prices plummet 25 per cent in just two years. Of the top 10 most challenging postcodes to sell a home in across the country, eight are located within the capital, according to the latest data from TwentyCi. Its data analysis factored in sold prices compared to original asking prices, how fast homes are selling, how likely a sale is to fall through and how likely a home is to have its asking price reduced. Currently, central London homes are achieving 96.1 per cent of their original asking price on average which is below the national average of 97 per cent. That means on a £1million initial asking price, the typical inner London property is selling for £961,000. Inner London homes are also less likely to sell at all, with only 37 per cent of listed homes going on to complete, compared with 55 per cent nationally. TwentyCi also found that 39 per cent of listings in the region undergo at least one price reduction compared to 37 per cent across the UK, and the fall-through rate stands at 25.5 per cent, above the national average of 24 per cent. Each property is taking on average 89 days to sell in London, which is slower than the national average of 84 days. Where in the capital are prices crashing? The situation in certain postcodes paints an even bleaker picture - and in some cases, there appears to be a full blown market crash playing out. Properties in Marylebone are achieving an average of 88.1 per cent of their original asking price. This would mean someone first listing for £1 million is typically selling for £881,000. In Marylebone, 35.5 per cent of homes that go under offer also fall through, according to TwentyCi - far above the UK average of 24 per cent. In parts of Belgravia, Knightsbridge and Chelsea, it's taking 201 days to sell a home on average - almost two and half times longer than the national average. Meanwhile, close to half all homes listed in Pimlico undergo at least one price reduction, according to TwentyCi. That compares to 37 per cent of homes across the UK. It may not come as a surprise that house prices in these areas are also falling, and in some cases plummeting. In the City of Westminster, average house prices have fallen 25 per cent since they peaked in January 2023 and are still below 2014 prices. The average home is selling for £920,000, based on latest Land Registry data, down from a high of £1,225,000. In Kensington and Chelsea, average house prices are down 28.5 per cent since they peaked in October 2021 and still remain below 2014 levels. The average home is selling for £1,183,000, down from a high £1,653,000. 'There's something strange happening to the top end of the London market but nobody wants to talk about it,' says Henry Pryor, a professional buying agent. 'Some estate agents worry that if they voice it, then it will make it true, but ignoring it just prolongs the agony. 'However, if you're buying or selling you need to hear this. The market isn't as strong as it was. 'What most people aren't being told is that while sellers of £1million plus homes think that it's 2021, but most buyers think it's 2015. 'The froth has come off the market and privately most estate agents will admit it's a buyers market.' Why are central London property prices falling? There could be all manner of factors causing prices to fall. Higher interest rates, Brexit, stamp duty and changes to non-dom tax rules causing millionaires to leave the UK. The proportion of overseas buyers registering with Countrywide group estate agents to buy a home in the UK fell in the first three months of 2025 to the lowest level on record. Many of the capital's super-rich are looking to get out, according to Jonathan Hopper, chief executive of buying agent, Garrington Property Finders. This is pushing prices down sharply. 'Rising taxation and political uncertainty have led many wealthy UK residents to reassess their presence here, and a rapid recalibration of London's prime property market is underway,' said Hopper. 'Some of those leaving Britain have chosen to sell their London homes, but we're starting to see a strategic shift as others retain their UK property assets and turn to the increasingly attractive lettings market instead.' David Johnson, managing director of property consultancy INHOUS also says wealthy investors are looking to sell up and move their money elsewhere. He also thinks that many sellers and estate agents are guilty of putting homes on the market at too high a price. 'Some areas within central London have recently seen an uplift in the number of properties being put up for sale as a number of wealthy investors decided to move on amid new tax regulations and global political as well as economic developments,' says Johnson. 'It is also not uncommon to see properties come onto the market 20 per cent overvalued. This is a combination of vendor expectations and an agent telling the vendor what they want to hear in order to gain control of that property.' One major issue for the London market is stamp duty, according to Johnson. A home mover buying a £1million property now faces stamp duty costs of £43,750. For someone buying a second property in London worth £1million, either as a pied-à-terre or investment, they will pay £93,750 in stamp duty, while an overseas buyer will see that rise to £113,750. 'A lot of buyers are no longer purchasing smaller properties in any of these locations as it doesn't make sense to buy a property if they plan on selling within two or three years' time,' adds Johnson. 'Instead, these buyers are choosing larger properties further out that they can stay in for five years or longer.' Buying agent Henry Pryor thinks it's more simple than just tax and politics. He suggests it is just a case of too many homes for sale and not enough buyers. Pryor may have a point. The number of homes priced at over £5million coming onto the market in February was up 30 per cent compared to the same month last year, according to the latest data from LonRes. 'It's not because of Liz Truss or Brexit or non-doms fleeing the country,' says Pryor. 'It's not because of interest rates, Ukraine or what's happening in The White House. It's because people will no longer pay whatever it takes. 'Overall stock is up. If you want to buy a big house or flat you have some great homes to choose from, but many buyers are just not sure if they want to pay the ticket price and many are waiting and watching rather than piling in. 'There are exceptions, of course but the days of joining 15 other eager buyers for an open house on a Saturday morning are a memory. City of London house prices are down 23 per cent since January 2022 'Well priced properties are still being tied up via 'best and final offers' but I'm finding that many only have two or three bidders rather than 10.' While prices in Central London appear to be in the doldrums, this could present a window of opportunity for those prepared to be brave and buy the dip, according to Pryor. 'Summer is coming, it will get hotter but the housing market looks like it will remain cool for the time being,' he adds. 'This may be the time to buy the million pound home you've always wanted but not because it's going cheap. It's just that not many other people want it just now.' Best mortgage rates and how to find them Mortgage rates have risen substantially over recent years, meaning that those remortgaging or buying a home face higher costs. That makes it even more important to search out the best possible rate for you and get good mortgage advice. Quick mortgage finder links with This is Money's partner L&C > Mortgage rates calculator > Find the right mortgage for you To help our readers find the best mortgage, This is Money has partnered with the UK's leading fee-free broker L&C. This is Money and L&C's mortgage calculator can let you compare deals to see which ones suit your home's value and level of deposit. You can compare fixed rate lengths, from two-year fixes, to five-year fixes and ten-year fixes. If you're ready to find your next mortgage, why not use This is Money and L&C's online Mortgage Finder. It will search 1,000's of deals from more than 90 different lenders to discover the best deal for you.
