Sellers in central London `cashing in'
Sun 12 Jun 2016
High property prices and an ultra-low interest rate environment are tempting many property owners in primecentral London to sell up and cash in.
Two-fifths (43%) of motivated sellers in prime central London put theirhomes on the market in the first quarter of this year to cash in on capital returns and release investments,according to new research by Marsh & Parsons. David Brown, CEO of Marsh & Parsons, commented: "TheLondon property market has long been the home of outstanding capital returns especially in infamous PrimeCentral postcodes. The vast majority of Londoners are understandably attempting to capitalise on the rapid rise inhouse prices over the past few years, alongside the steady stream of eager buyers, by selling their home in orderto liquidate their investment."
Releasing investments constituted the main reason to sell overall, motivating almosthalf (49%) of all sellers a higher proportion than elsewhere in the capital while downsizing was also morecommon in prime central London than the wider capital average too, with 9% of homeowners intending to moveto a smaller property.Those looking to upsize are generally now targeting outer prime London areas, such asBalham, Battersea, Queen's Park, East Sheen and Clapham, with the study revealing that 34% of sellers put theirhome up for sale in order to move to a bigger property."But in prime central areas, there is much greater appetiteto downsize and relocate elsewhere to circumvent the more stringent Stamp Duty levy, which they will have topay as a buyer on their next purchase," added Brown.
The key findings also show that almost a third (29%) claimthey put their property up for sale in order to upsize to a bigger home. A further one in five (19%) sellers intend torelocate after finding a buyer. Just 5% of Prime London sellers put their property on the market in order todownsize to somewhere smaller, while 3% of Prime London homes were sold due to divorce in Q1.