Today, boutique estate agency Patterson Bowe has revealed that since the Conservative Government was re-elected and Mansion Tax fears were alleviated, there has been an average of 30 potential buyers for every property listed at £2 million and above in the borough of Kensington and Chelsea.
Consequently, vendors at the top end of the market have recently managed to command above local average asking prices for their properties which are currently valued at more than £2,000 per square foot in the most prime locations.
This is in sharp contrast to the market climate prior to the Election where properties at £2 million and above were not going under offer for several weeks and consequently not always achieving their true market value.
However, Stuart Patterson, Managing Director at Patterson Bowe, has found that vendor’s concerns about Stamp Duty still remain the biggest obstacle to successful transactions of properties over £2 million, which has led to a significant lack of supply and a surplus in demand.
“Of the properties we currently have under offer at £2 million and above, the majority have now achieved above average prices for the area at more than £2,000 per square foot. Although the recent hike in Stamp Duty is taking time to be absorbed into the market, it remains a significant factor both to a purchaser and conversely to vendors considering moving or trading up.”
“However such has been the flurry of buyer demand since the Election we would be confident in assuring anyone thinking of selling in the Borough that they would be able to command a price that would comfortably include any Stamp Duty costs into the overall purchase price owing to the highly competitive nature of the current market.”