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News: "Business as usual" for Central London property market

Tue, 02 Jun 15

In the months leading up to the vote, activity slowed, thanks to concerns surrounding the proposed mansion tax and changes to stamp duty. Now, though,  specialist lender Shawbrook Bank says it is "business as usual".

"We’re already seeing stock market confidence in the sector returning and anticipate that investors will quickly follow suit. With the prospect of a mansion and non-dom tax removed, we believe investors are unlikely to continue to hesitate. With regards to stamp duty, given that the changes are relatively favourable for lower value properties, the vast majority of the BTL market has actually benefitted from the change – with only properties over £1m seeing an increase.”

“We particularly expect confidence to return to Central London," comments Stephen Johnson, MD of the Bank’s Commercial Mortgages division, "but it remains to be seen how much more prices will rise. When asked, our property investor clients said that they expected to see a small increase in both property values and rents in 2015."

"Among our own clients we are seeing moves to meet the growing needs of the private rental sector, often through refurbishment, expanding existing properties, or converting properties into houses of multiple occupancy," he adds.

"We expect the property sector to return to the upwards trend of the last few years," he concludes.


See also: Home Prices in Central London

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