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Happy holidays for luxury London property

Prolonged stamp duty break leads to record sales. Find out what’s happening where you live or where you’re looking.

 

Happy holidays for luxury London property

Prolonged stamp duty break leads to record sales. Find out what’s happening where you live or where you’re looking.

143.8%

Rise in number of properties put up for sale since the same time last year

151 days

Number of days it’s taking to sell, compared to 170 days in the second quarter of 2020

2.9%

Price increase since the first three months of this year

143.8%

Rise in number of properties put up for sale since the same time last year

151 days

Number of days it’s taking to sell, compared to 170 days in the second quarter of 2020

2.9%

Price increase since the first three months of this year

  • chapter 01

    Overview

     

    Buyers seeking high-end London homes picked up properties in their droves after the government extended its stamp duty holiday earlier this year.

    More properties worth £1 million or more sold in the capital from April to June than any other three-month period since our records began in 2013.

    The number of sales – 994 – was over 11% higher than the previous peak in 2014, when the market was booming, and up almost 200% compared to Q2 2020. Although that’s after the market effectively shut down due to Covid.

    Some of the sales hikes in specific areas are eye-popping. For example, the number of properties sold in Fulham & Earl’s Court was up 339% on the same time last year. Even if you take the pandemic out of the equation by comparing it to Q2 2019, it’s still up 60%.

    All the latest numbers come from our quarterly review of the market – the Coutts London Prime Property Index (CLPPI) – which reveals what’s happening area-by-area (see below).

     

     

    Considering your next move? Let Coutts help

    Our real estate team could help you find the perfect property. And our bespoke mortgage service means we could provide a mortgage that’s as unique as you are.

     

    Or contact your private banker to find out how we could help you.

     

    Your home or property may be repossessed if you do not keep up repayments on your mortgage.

    Over 18s only. Credit is subject to status and approval. Think carefully before securing other debts against your home.

     

    PRICES UP AND MORE PROPERTIES FOR SALE

    The surge in activity contributed to price rises of almost 3% since the first three months of the year, albeit from low levels. And the number of prime properties on the market increased by a massive 143.8% since the same period last year.

    In March, the government extended its stamp duty holiday from the end of that month to 30 June – the tax was suspended on the first £500,000 of sales. And now, until the end of September, it doesn’t kick in until after the first £250,000 of a sale – whereas it’s usually after the first £125,000.

    Alan Higgins, Chief Investment Officer at Coutts, said that, while this certainly gave the market a boost, there were other factors at play too.

    “The returning strength of residential property, in London and across the UK, is part of a global trend towards firmer prices as ultra-low interest rates overcome the economic dislocation of 2020.

    Despite higher inflation, low interest rates are here to stay. And this, along with the strong economic recovery, is providing underlying support for property.”

     

    Prices RISE AS LOCKDOWN LIFTS

     

    Source: Coutts & Co, LonRes

     

    SELLING FAST AND LOOKING GOOD FOR the REST OF THE YEAR

    PROPERTIES ARE

    SELLING FASTER

     

     

    The number of days between listing and exchange fell from 170 days a year ago to 151 this year – an 11.3% drop. 

     

    THE MARKET REMAINS

    ACTIVE GOING FORWARD

     

     

    The number of properties under offer at the start of July was 23.6% higher than at the end of Q2 2020. 

    PRICES ARE RISING HIGHEST AT

    THE LOWEST END OF THE MARKET

     

     

    Homes selling for between £1 million and £2 million saw the biggest annual increase, up 4.9% on Q2 2020. 

    Buyers seeking high-end London homes picked up properties in their droves after the government extended its stamp duty holiday earlier this year.

    More properties worth £1 million or more sold in the capital from April to June than any other three-month period since our records began in 2013.

    The number of sales – 994 – was over 11% higher than the previous peak in 2014, when the market was booming, and up almost 200% compared to Q2 2020. Although that’s after the market effectively shut down due to Covid.

    Some of the sales hikes in specific areas are eye-popping. For example, the number of properties sold in Fulham & Earl’s Court was up 339% on the same time last year. Even if you take the pandemic out of the equation by comparing it to Q2 2019, it’s still up 60%.

    All the latest numbers come from our quarterly review of the market – the Coutts London Prime Property Index (CLPPI) – which reveals what’s happening area-by-area (see below).

     

     

    Considering your next move? Let Coutts help

    Our real estate team could help you find the perfect property. And our bespoke mortgage service means we could provide a mortgage that’s as unique as you are.

     

     

    Or contact your private banker to find out how we could help you.

     

    PRICES UP AND MORE PROPERTIES FOR SALE

    The surge in activity contributed to price rises of almost 3% since the first three months of the year, albeit from low levels. And the number of prime properties on the market increased by a massive 143.8% since the same period last year.

    In March, the government extended its stamp duty holiday from the end of that month to 30 June – the tax was suspended on the first £500,000 of sales. And now, until the end of September, it doesn’t kick in until after the first £250,000 of a sale – whereas it’s usually after the first £125,000.

    Alan Higgins, Chief Investment Officer at Coutts, said that, while this certainly gave the market a boost, there were other factors at play too.

    “The returning strength of residential property, in London and across the UK, is part of a global trend towards firmer prices as ultra-low interest rates overcome the economic dislocation of 2020.

    Despite higher inflation, low interest rates are here to stay. And this, along with the strong economic recovery, is providing underlying support for property.”

     
    Prices RISE AS LOCKDOWN LIFTS
     

     

    Source: Coutts & Co, LonRes

    12.9%

    Prices are still 12.9% below the market peak of 2014

    1.9%

    Prices are up compared to Q2 2019 

    -0.3%

    Prices fall since the same period 12 months ago

    2.9%

    But have picked up since the start of the year

    SELLING FAST AND LOOKING GOOD FOR the REST OF THE YEAR

    PROPERTIES ARE

    SELLING FASTER

     

     

    The number of days between listing and exchange fell from 170 days a year ago to 151 this year – an 11.3% drop.

    THE MARKET REMAINS

    ACTIVE GOING FORWARD

     

     

    The number of properties under offer at the start of July was 23.6% higher than at the end of Q2 2020. 

    PRICES ARE RISING HIGHEST AT

    THE LOWEST END OF THE MARKET

     

     

    Homes selling for between £1 million and £2 million saw the biggest annual increase, up 4.9% on Q2 2020.

     

    “The returning strength of residential property, in London and across the UK, is part of a global trend towards firmer prices.”

     

    Alan Higgins, Chief Investment Officer, Coutts
    STAMP DUTY BREAK BOOSTS LONDON LUXURY PROPERTY SALES
     

    Source: Coutts & Co, LonRes, July 2021

    Source: Coutts & Co, LonRes, July 2021

  • chapter 02

    local insights

     

    Shining a light on the most notable shifts across London

    As 2020 was such an extraordinary year, we’ve compared some figures with Q2 2019 as well to provide a fuller, more ‘like-for-like’ picture.

    Mayfair & St James’s
    Marylebone & Fitzrovia

    The number of sales in Mayfair & St James’s was just 5.6% higher than in Q2 2019, with Marylebone & Fitzrovia seeing a 6.9% rise. This compares with an overall increase of 60.3% across all prime London. These areas were the only two to record an annual fall in prices in Q2 2021 – 5.8% in Mayfair & St James’s, 2.2% in Marylebone & Fitzrovia.

    Kensington, Notting Hill & Holland Park
    Bayswater & Maida Vale

    Kensington, Notting Hill & Holland Park saw the highest annual growth in prices, up 9.2% in Q2 2021. The number of homes sold rose 43.6% compared to two years ago. Demand meant average discounts of 3.4% were the lowest of any prime London area this quarter. Similarly, Bayswater & Maida Vale saw prices rise 8.2% annually and sales increase 57.1% on Q1 2021.

    Hammersmith & Chiswick
    Battersea, Clapham & Wandsworth

    High demand for larger family homes meant prices in Hammersmith & Chiswick rose 8.5% this quarter compared with Q2 2020. And the number of homes sold was up by a third since the first three months of the year. In Battersea, Clapham & Wandsworth, prices rose 7.1% compared to last year, and the number of sales was up 60% compared with two years ago.

     

  • chapter 03

    INTERACTIVE MAP AND POSTCODE SELECTOR

     

    Pick an area and get a good look at its prime property market

    As 2020 was such an extraordinary year, we’ve compared some figures with Q2 2019 as well to provide a fuller, more ‘like-for-like’ picture.

     

    Map shows the average quarterly sales price per square foot (£) and the annual change (%)

     

     

Your home or property may be repossessed if you do not keep up repayments on your mortgage. Changes in the exchange rate may increase the sterling equivalent of your debt (multi-currency debt only).

Over-18s only. Terms and conditions apply. You may not be eligible for all Coutts mortgage solutions. Security may be required. Product fees may apply.

Source of data in the report: LonRes Q2 2021.