Spring Market Update
Egerton Gardens SW3
Since Easter we have transacted on properties in Notting Hill, Kensington and Knightsbridge and today we complete on a mews house in Holland Park. The mews house has been acquired for overseas clients and, as their buying agent, we have coordinated all the professionals on their behalf and will be instructing rental agents to let the property for them going forward.
We’ve also acquired a lateral flat in Egerton Gardens for a client getting their children on the central London property ladder. In these acquisitions we have identified value and have bought at discounts from when these properties were last sold.
In addition, we’ve managed the sale of a very special house in Kensington. This was a highly targeted approach where only two select buyers were shown the property, resulting in a swift transaction conducted entirely off-market.
In March, we were recognised by Spear’s 500, a guide to the top private client advisers, wealth managers, lawyers and service providers for high-net-worth individuals, often described as the Michelin guide of wealth.
“Harry Dawes, the former head of Knight Frank’s flagship Sloane Avenue office, has dealt in prime central London for over 20 years. Inspired by his connection with clients, he founded the buying agency Dawes London in 2021. ‘I always enjoyed acting for buyers,’ Dawes tells Spear’s. ‘I take on half a dozen clients that I can service 365.’
A new edition in this year’s Property Indices, the amiable founder says that many of his transactions are off-market. ‘Discretion is paramount in our dealings,’ he notes.”
Market Update
There is no question that changes to non-dom status have had probably the largest bearing on confidence in the central London market. This, combined with a further increase in stamp duty for international buyers. As you will have read above, many properties that have been bought post 2013 are now trading at a discount below their last selling point. Unless properties are truly unique, competitive pricing is fundamental for them to sell.
With uncertainty brings opportunity and we are currently presenting properties to our clients that show genuine value. When market forecasting is fairly flat, in terms of capital growth, it is vitally important to consider how long you envisage owning a property for. We encourage clients to try and think beyond five years and really future proof their transactions so stamp duty isn’t paid unnecessarily. Perversely, for an agent, we are looking for our clients to transact well, once.
Unmodernised properties continue to take a long time to transact, particularly Listed buildings. Construction costs are yet to return to pre-pandemic pricing and buyers simply don’t want the headache of major building works. In very broad terms, supply has increased whilst demand has decreased. There is a stand-off between buyers’ and sellers’ expectations and a clear softening of pricing. As a snapshot, there are currently 51 houses for sale in SW3 between £5 – £10 million (data taken from LonRes.com).
The pendulum has swung towards buyers. With choice and opportunity increasing, it is even more important to ensure you are receiving the very best advice when purchasing. Mistakes are costly when stamp duty can be 17%!