St John’s Wood is an integral part of the London property market and one which has suffered of late due to the Brexit vote last year. Indeed throughout London there were just 23 property sales worth in excess of £10 million between June and November last year. This compared with 56 during the same period in the prior year. So, what is the relevance of this St John’s Wood mansion sale?
Luxury property back in vogue
It is believed that the St John’s Wood mansion on Hamilton Terrace, near the House of Lords, changed hands for just under the £16.5 million asking price. The property itself has seven bedrooms, a staff bedroom, six bathrooms, a gym and a spa after a relatively recent five-year refurbishment. In many ways this is your stereotypical London mansion and thankfully there seems to be growing interest in London properties worth in excess of £10 million.
At this moment in time we await confirmation of the buyer although it is believed to be the Thakrar family who were credited with bringing Basmati rice to the west before selling their business for £200 million in 2014. The family is unwilling to confirm or deny speculation although at some point we will receive confirmation.
Super prime residential market
As we have mentioned on numerous occasions, the London property market may be part of the UK property market but in effect it is a market within a market. The UK property market as a whole has held up relatively well since Brexit but the London market has been down 20% in some areas. Many estate agents will be breathing a sigh relief with news of the £16 million St John’s Wood mansion sale which was there are thereabouts the asking price. There are high hopes it will give buyers the confidence to dip a toe back into the market at a time when there are many willing sellers around.
Just prior to the Brexit vote the UK government had just finished a campaign of relentless additional costs for the UK property market. While the politicians will deny this, there is no doubt that these additional costs have forced some potential buyers to hold back to see whether property prices in London will fall further. So, are we now approaching the level where both domestic and overseas buyers are beginning to see value in the London property market?
Too soon to call bottom of market
At this moment in time it is too soon to call the bottom of the London prime property market but there is no doubt buyers are beginning to emerge again. There is also the matter of overseas investors who have a significant advantage due to the collapse of the UK currency in recent times. The prime London property market has been through similar phases on numerous occasions over the years and has always managed to bounce back. The major concern at the moment is whether the City of London financial markets will remain as strong in light of the forthcoming European exit or whether some financial giants will be forced to move to mainland Europe.