Westminster & Pimlico

Westminster and Pimlico
 
What lies ahead?

17 November 2016, by Gaby Day

London’s prime residential markets will need to adapt and adjust to a number of challenges

 

It is important to consider the Westminster and Pimlico markets within the wider context of the London property market and economy.

The Sales Market

The prime housing markets of London have had to face a number of tax changes over the last two years, including increased stamp duty for higher value properties from December 2014 and a 3% stamp duty surcharge on additional homes introduced in April 2016.

The Westminster and Pimlico markets, with their high levels of investment buying, have felt the effects of these changes and, as a result, we expect these areas to remain price sensitive over the short to medium term as the additional costs are absorbed into the market.

The outcome of the EU referendum in June has likewise had an impact on the market in creating uncertainty. At this stage the market is yet to show the true impacts of Brexit and initially we expect there to be caution from buyers, especially regarding the strength of the economy and the availability of mortgage debt.

The question still remains whether the Government can protect the passporting rights for the City to provide a full range of banking and financial services across the EU and how this will affect London’s standing as a global financial centre. Against this context, the devaluation of sterling may create an opportunity for overseas investors.

Looking forward, the regeneration projects in Victoria should result in an uplift of values for surrounding property and this should create a ripple effect across Westminster and Pimlico.

Rental Market

Uncertainty in the sales market should push demand into the rental market from those reluctant to commit to a purchase. We may also see an increase in the number of accidental landlords bringing more stock to the market. This means landlords will need to remain competitive in their asking rents and flexible on terms to continue to attract tenants.

However, the redevelopment in Westminster and Pimlico means rental values should see a similar value uplift to the sales market and the continued commercial interest for companies in the area will underpin demand from young professionals.

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