Is Boris set to bring some colour back to London’s beleaguered property market?

For the last few years, the upper tiers of the London market have seen a significant correction with most agents reporting at least 20% falls in prices in real terms. Of course where “best in class” is concerned, some anomalies have still been thrown up, but generally this sector of the market has probably corrected further than at any time in history. In part, this could have been predicted as the inflation from 2008 -2015 where prices all but doubled was unwarranted given the economic climate and the proverbial bubble was reaching capacity.

Whilst George Osbourne had introduced multiple taxes on property up to December 2014, the increase in stamp duty proved a catalyst for the correction. As with many market defining moments we didn’t realise the full impact until a few months later when it started to become clear the buyers had gone. As the graph for Greater London house sales shows, these falls have not yet stopped.

Lonres Data

At the upper tiers of the London market we are probably now seeing better value for money than at any time for almost 20 years and, whilst activity has improved this year, we are still in a buyers’ market. Boris Johnson, who seems our PM elect, has promised to overhaul the stamp duty system. If these much needed changes are introduced this could kick start London’s residential property market, even with Brexit unresolved.

In general, people were unsympathetic to the higher stamp duty on multi-million pound property purchases, but what has to be realised is that without volumes at the upper tiers of the market, this will start to affect all levels of residential property and multiple businesses.

When one person buys a large mansion in London, the seller may downsize, and the buyer of the mansion will employ multiple trades in refurbishing the property for several years, all of which goes to create more market activity and more employment in the trades. In the static, falling market we have had for over 4 years, this economic activity is gone, far fewer trades are employed, it is difficult to borrow for re-investment and businesses start to fail.

Whilst Brexit will still have its effects, this change in stamp duty will have a major positive role in helping all tiers of the market and the many areas of the economy connected to our residential property market.

What Our Clients Say

“For my demanding and often complex clients, high professional standards from my trusted network are mandatory, but James and his team really do consistently offer flexibility, speed and crucially additional emotional intelligence. A pleasure to engage and include in my client work”
Jeremy Hill
Senior Private Banker, SG Kleinwort Hambros Bank Limited
“In a short timescale De Villiers were able to secure a very competitive deal in some excellent offices at one of the best building at Canary Wharf"
Mark Iannotti
Director, Savannah Petroleum Plc
“The fit out at Croxley Gateway on our new HQ was completed on time and we were very pleased with the senior and highly responsive service that De Villiers provided”
Michael Lee
Property Manager, Beko
“De Villiers have always been very approachable. They offer everything a lender could expect from a firm of chartered surveyors – and that little bit extra, too”
Mark Posniak
Managing Director, Octane Capital Limited
"I have found De Villiers Commercial to be very knowledgeable and professional. We started working with them in 2015 and they now manage all of our real estate matters across the UK. Their advice has helped us in negotiations and saved us money. I have found De Villiers to be very responsive and when something is needed quickly they move fast to meet the deadline"
Matt Brown
Finance Director, Eon
"De Villiers Commercial provide property and estate advice across our UK, ROI and International portfolio for Britvic PLC on a number of wide ranging property issues and we have found De Villiers’s support and advice extremely useful and commercially astute"
Clare Thomas
General Counsel and Company Secretary, Britvic PLC
“De Villiers consistently provides a highly professional and prompt service at a reasonable price”
Alpa Bhakta
CEO, Butterfield Bank
“De Villiers are totally focused on customer service and satisfaction, nothing is too much or too difficult for them, they are always friendly, courteous and willing to go the extra mile”
Colin Sanders
CEO, Tuscan Capital Limited
"De Villiers deliver everything a bank wants and expects from a valuer and when asked for something above and beyond the normal then the answer is usually “yes, that’s no problem”. "
Richard McAdam
Head of Residential Lending, Ahli United Bank (UK) PLC
“De Villiers offers an extremely professional and thorough report combined with efficiency and speed of service. De Villiers are always accessible and accommodating, working with tight timescales at very short notice and communicating with the client and their agents at all times”
Caroline Roberjot
Partner, Harbottle & Lewis
“Judgement and advice you provide Precise has never been questioned and is never in any doubt"
Richard Lawton
Head Of Short Term Lending, Precise Mortgages
"De Villiers Commercial acquired our new head office in Pall Mall, Central London in a very tight timescale and they were able to match our very specific brief. We would not hesitate to recommend their property services"
Dogan Korkmaz
Chief Financial Officer, Tüpraş Oil

Stay Updated

We would love to keep you updated occasionally with our news and views.
You can unsubscribe at any time.

Subscribe

* indicates required

We will use the information you provide on this form to get in touch with you and to provide updates and marketing information. Please let us know all the ways you would like to hear from us:

You can change your mind at any time by clicking the unsubscribe link in the footer of any email you receive from us, or by contacting us at anna.svandova@dvcommercial.co.uk. We will treat your information with respect. For more information about our privacy practices please visit our website. By clicking below, you agree that we may process your information in accordance with these terms.

We use Mailchimp as our marketing platform. By clicking below to subscribe, you acknowledge that your information will be transferred to Mailchimp for processing. Learn more about Mailchimp's privacy practices here.

© 2022 De Villiers Chartered Surveyors

Web Design by Make it Seen Media