What the UK election result holds in store for Marylebone property

When the Exit Poll results were revealed, Conservative supporters weren’t the only ones celebrating – estate agents in Prime Central London also had cause for celebration.

The establishment of a majority Conservative government brought an end to speculation and stalemate that had gripped the market, and unleashed millions of pounds in transactions virtually overnight.  

With the threat of the Mansion Tax extinct, the return to the market was imminent, with millions of pounds in real estate exchanging hands in the early hours of May 8^th. As the possibility of this tax hung in the balance, so too did the number of transactions, with a significant slowdown in the number of properties in the would-be affected £2 million bracket being sold over the past six months. However, as stability returns to the market, homebuyers and investors alike are set to return to do the same – which spells great news for property in Marylebone.

Good news for property hunters in Marylebone

While transactions may have slowed in the run-up to the election, buyer uncertainty did not impact prices.

The area’s average house price of £1,698,596 remained stable, with some local estate agents revealing they have experienced buyers “gazumping” – or upping their offer at the time of sale – as confidence returns. Many experts have improved overall forecasts for house prices in the capital, albeit slightly, with IHS Global Insight upping predictions from 5pc growth to 6pc for 2015. However, in the short term, many estate agents are expecting bidding wars as buyers have the confidence to finally put sought-after properties on the market.

A market that has long benefit from foreign investment, Marylebone also saw a number of ultra high net-worth individuals finalize transactions from overseas as soon as the election results were revealed. This foreign investment is expected to continue, meaning competition for available properties will likely remain fierce.

Developers can also breathe a sigh of relief, with a number of luxury developments such as The Chilterns underway. With faith restored that UHNW buyers will invest in new apartments, construction and pre-sales can continue at rapid pace.

The general consensus among property experts is that the election results provided a welcome boost into the central London property market. It seems now that with the “spring swing” in full force and a Tory government at the helm, there is a discernable “feel good” factor in the air that will move the Marylebone property towards a prosperous 2015.