The flat is back in demand in Britain’s most expensive rental enclave, a lettings agency says.
Demand for apartments in prime central London has risen as overseas investors return, according to Knight Frank.
The proportion of flat sales in PCL in Q4 2022 was 74 per cent, which was the highest level in three years, Knight Frank and LonRes data shows.
The strongest annual price growth in PCL in the year to January 2023 was in South Kensington (up 5.5 per cent) followed by Knightsbridge (up 4.5 per cent) - both are areas where the sales market is dominated by apartment.
“Returning international buyers can see there has been very little change in prices over the last two to three years and that is driving demand for flats” says Stuart Bailey, head of prime central London sales at Knight Frank.
“Buyers are particularly motivated in more central areas and at higher price points.Prime central London was no different from the rest of the country and activity levels dropped noticeably in the final three months of last year.
“The feeling I get is that the effect of the mini-Budget has worked its way through the system and there is a healthy balance between supply and demand in most areas that will support the market in PCL this year.”
A higher proportion of sales in PCL are in cash, making this niche market less vulnerable to interest rate rises.
Another factor to consider is the currency discount. When price declines and the effect of a weaker pound are taken into account, effective discounts of around 35 to 40 per cent are available compared to July 2014 in PCL.
Average prices in PCL are still 15 per cent below their last peak in August 2015, highlighting the strength of the relative value argument. The decline for flats is 18 per cent and 10 per cnet for houses.
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Not for me, I don't do leasehold flats
Only ever had one and got rid of it last year. My least favourite property.
Leasehold needs radical reform but not expropriation of freeholders. All new leases, including extensions, by law, should be 999 years. Extensions for existing leaseholders could have a one off alternative option of 30 years (to cover elderly leaseholders with limited capitial). Leaseholders should be allowed to withhold service charge payments if accounts are not provided by the freeholder.. Better still, all service charge accounts should be listed by law on a national data base on a proscribed standard format (supplementary pages could be submitted voluntary by any freeholder who feels too constrained by a standard format). Such a national data base would aid buyers and sellers of leasehold properties.
Well there a lot of factors here of course Flats are selling more by comparison relatively, mini Budget working its way through a Healthy Balance my foot.
With high cost of buying gone through the roof since quadrupling of interest rates more people can’t stretch to buying a House so will have to settle for a Flat hence more Flat sales relatively.
Accounts to be published, posted or challenged good luck with that you’ll be paying, I believe all Accounts will then have to be Audited another layer of bureaucracy and costs regardless of M of A.
Some blocks are small run by the lease holders themselves who owns the majority of the Shares individually, collectively or outright in the Freehold Company already. I don’t pretend to know all about leasehold but have had some experience of it to my cost including extending a lease purchase through the Court process of Enfranchisement that’s something else.
Careful what you wish for and watch out for Rule 13 used against us for first time in History and has become Case Law.
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