The central London residential property market saw a new wave of interest during the beginning of 2015 following months of soaring property prices that left many investors searching for more affordable opportunities.
According to a new report by real estate firm JLL, the property market is still busy when it comes to listings below £1 million, but changes to Stamp Duty and the possible introduction of a mansion tax under a potential Labour government have both contributed to a slowdown in the market above £1.5 million. The research also reveals that construction in London continues to increase, with 26,500 buildings currently in development, a 23 percent increase on the second half of 2014.
Indicating that the upcoming general election has had very little impact on property construction developments in the city, Neil Chegwidden, director in the residential research team at JLL said:
“It is good news that new supply is on the rise, but we continue to fall short of London’s targets and it will be intriguing to see what impact a new government might have on this vital issue“.
The report also looks at the legacy of the 2012 London Olympic Games on the east of the city, stating that 10 years after the successful bid, the East Village has its first residents. Furthermore, this part of London is hailed as having a great deal of potential when it comes to development and regeneration,
While not historically known as an ideal location to invest in property, the East of London now appears to be working its way through the ranks as is evident by its sales market, which was the most active sub-market in London in 2014. Over 5,000 properties were purchased in the region last year, accounting for 51 percent of all outer core sales and 39 percent across the centre of London. This surge in activity saw prices increase by 7.5 percent last year and estimates suggest that they will continue to rise throughout the duration of 2015.