London's luxury property market is currently experiencing a resurgence, marked by a series of high-profile listings and sales that signify a return to pre-Brexit levels. Several expensive properties have recently entered the market, notably 2-8a Rutland Gate and The Holme, both commanding an impressive asking price of over £200 million. These properties have attracted interest from prospective overseas buyers, with some visiting both sites on the same day. Despite the booming sales, experts predict a slowdown in the coming months due to political uncertainties.
2-8a Rutland Gate, a 45-room "private palace" overlooking Hyde Park, and The Holme, a 40-bedroom villa within Regent's Park, represent the pinnacle of London's super-prime real estate offerings. The demand for such properties has contributed to a notable increase in high-value transactions. In the year leading up to March, London recorded 161 sales of properties valued at over £10 million, the highest number since 2016. Most of these transactions occurred in affluent areas such as Kensington, Belgravia, and Mayfair.
The surge in luxury property sales has resulted in a combined expenditure of £3.1 billion on properties priced above £10 million. The average price for these high-end homes stands at just over £19 million. Noteworthy transactions include Swiss billionaire Ernesto Bertarelli's acquisition of an 80-room mansion in Belgravia for £92 million and Hanzade Doğan Boyner's purchase of a six-bedroom mansion in Knightsbridge for £27 million last year.
However, the outlook for London's super-prime market is not without challenges. Experts anticipate a decrease in sales by at least 10% over the next year, primarily driven by concerns surrounding the potential outcome of the next general election. Christian Lock-Necrews noted that political discussions are beginning to influence buyer decisions.
“Discussions around the general election have started to creep into conversations,” – Christian Lock-Necrews
The political climate is further complicated by issues regarding the taxation of wealth and property, as well as the status of non-domiciled individuals. Akshata Murty, the wife of the UK Prime Minister, has been highlighted for her non-dom status that allowed her to avoid up to £20 million in tax on dividends from Infosys. A study by academics at the University of Warwick and the London School of Economics revealed that 26,000 people with non-dom status collected an average of £420,000 annually in unreported overseas income and capital gains.
“Issues such as the taxation of wealth and property and the status of non-doms are likely to come under growing scrutiny.” – Knight Frank
Despite these challenges, London's appeal remains strong among international buyers. The city continues to be seen as a desirable destination for investment and luxury living.
“After everything that has happened in recent years, London is still highly regarded by global buyers.” – Paddy Dring