With Brexit delayed again and a general election looming, award-winning Prime London property buying agency Ludgrove looks at where domestic and overseas buyers can get the most for their money, and why now is the time to buy.
Exclusive research compiled by Ludgrove shows that Prime London house prices have depreciated by an average 16% from the 2014 peak. By borough this can be higher or lower, for example in St George’s Hill prices are down by a whopping 39%, in Bayswater & Maida Vale by 22% and in Kensington, Notting Hill & Holland Park by 20%.
Fraser Slater, CEO of Ludgrove comments: “These figures show there are many bargains to be had for buyers, especially overseas buyers which have the added benefit of purchasing in a depressed currency. The decline in prices is similar to where previous historic Prime London property recessions have troughed and then recovered. Now in the fifth year of decline, the downturn has also far outstripped all other Prime London property recessions in the last 35 years, meaning a recovery is long overdue, and expected once Brexit is resolved.”
Fraser continues: “With prices falling by 39%, St George’s Hill in Weybridge comes out as the all-star bargain. Situated on a gated, 960 acre private estate with a world-class golf course and tennis club, St Georges’ Hill is often referred to as the Beverley Hills of the South East. Prices here have fallen to such an extent that some properties are being sold with a negative land value and on rental yields of 5-6%. Typically, the area is one of the first into a downturn and the first to recover, often recovering aggressively when the upturn comes.”
Fraser adds: “With its close proximity to Hyde Park and Holland Park, excellent schools and large period properties, Kensington, Notting Hill and Holland Park is offering excellent value. Prices here have fallen by 20% since, again a similar decline to those in 2008/9 and 1989/92. Relatively weaker value is found in areas such as Marylebone and Vauxhall, Nine Elms & Kennington where prices have actually risen. However, we wouldn’t read too much into this. The increase here can be largely explained by the significant increase in high-specification new build or refurbished properties changing the mix of properties sold. If there was also one area that has defied the odds it is Marylebone Village where the Howard De Walden Estate has over the years transformed this area into one of London’s finest.”
The exclusive research also highlights that overseas buyers are extremely well placed to capitalise on the weakness in the market and exchange rate. For example, combining the average 16% decline with the 18% depreciation of the Sterling against the Dollar, USD Buyers can now purchase Prime London property -34% cheaper than the peak 5 years ago. For an Israeli Shekel buyer, the discount is -42%.
Fraser concludes: “Clearly Dollar-pegged currencies such as the Dirham, the Hong Kong Dollar and the Singaporean Dollar are in a strong position. Other USD pegged currencies not on our list but significant buyers of London property also include Saudi Arabia, Qatar, Oman and Bahrain. Below we have combined our local market analysis with the change in currency rates since 2014 to give overseas buyers a snapshot of where best value can be achieved. Israeli Shekel and Japanese Yen buyers in St George’s Hill are in pole position. Here property prices are -65% and -64% cheaper in local currency terms – making now the time to buy a property in Prime London.”
For further information on Ludgrove visit www.ludgrovepoperty.com.