‘Let’ The Good Times Roll

For the first time since we opened our doors for business in 2014 we have found that our rental income, for the last 3 months, has overtaken our sales income. This has come as no surprise to us at NVP. We were expecting the sea change and believe the trend is here to stay for the next couple of years while our government implements Article 50 and negotiates new trade agreements with Europe and the rest of the world.

 

This seems to correlate with the other leading estate agencies, most of which are anticipating more properties being available to rent than for sale in 2017.  Recent data relating to the PCL super-prime lettings market regarding transactions above £5,000 per week show an increase of 16% compared to last year, as top-end sales slow to a crawl.

 

For many wealthy individuals looking to buy a seven or eight figure home in the UK the sums don’t add up.  As Knight Frank’s head of super-prime lettings Tom Smith points out, the stamp duty on the purchase of a £15m property is £1.7m, which is the equivalent to three years rent.  Yields can reach between 3.5% and 4% for best-in-class super-prime properties due to their relative scarcity, which compares to less than 3% across prime central as a whole.

 

This is not to say the news relating to prime sales is all bad. Deals in excess of £30m rose by 28% this year compared to last, so each to their own!

A selection of the best property stories this month:

Property millionaires falling in UK: https://www.mansionglobal.com/articles/number-of-property-millionaires-falling-in-britain-122323 But £15m+ super-prime sales surging: https://www.mansionglobal.com/articles/surge-in-15-million-sales-means-little-for-the-rest-of-prime-central-london-121622 New mansion tax for Kensington & Chelsea: https://www.standard.co.uk/news/london/millionaire-residents-asked-to-pay-mansion-tax-towards-council-services-a4074051.html ...

Brighter Days

Here at NVP, as we ease our way into February, we are feeling grateful. Despite the flat market, we are ...

Five Things We Learned from a Wise Man.

Christmas is a good time to reflect and ask ourselves where we get our inspiration. NVP’s investor, the Dutch businessman John ...

Supply and demand in prime residential London property

We thought we'd share the following observations about supply and demand and the current stage of the residential property cycle ...

The NVP Partnership

Having recently celebrated four years of being in business together, we thought you might like to know a bit more ...

NVP: new website completes transition phase

In Montpelier Street we are celebrating our fourth birthday this month. And although these are some of the most challenging ...

Online brands: a word from our peers

We’ve spent the last few months assessing the various factors at play in what is a challenging property market for ...

How millenials are changing the housing market

The debate is underway as to whether online agents are really performing. With a new market of millennial ‘digital natives’ ...