The playing field has changed substantially’ for property buyers, says one of London’s top buying agents, as she explores why Trump’s tariff-induced international economic turbulence feels different to previous financial crises.

Global financial markets have been on a wild ride in recent weeks, reacting to rapid changes to international trade dynamics as President Trump toys with the America’s tariff regime.

Prime London property is often touted as a “safe haven” in times of economic volatility, but are things different this time around?

Top-flight buying agent Camilla Dell, founder of Black Brick, has been musing on how the current turbulence compares with previous bouts of economic mania – such as the Global Financial Crisis of 2008.

“In 2008–2009, we saw a clear flight to safety,” says Dell. “At the height of the global banking meltdown, with names like Lehman Brothers, Bear Stearns, and AIG dominating headlines. Many of our clients turned to London property as a tangible, stable alternative to volatile stocks and bonds. Activity surged, driven both by opportunists and those seeking the security of bricks and mortar.”

This is not the case today, suggests Dell. “We don’t anticipate a sudden rush of overseas buyers flooding the market, despite the current financial volatility,” she says – although her buying agency is seeing “notable momentum from UK domestic buyers those upsizing, downsizing, or purchasing second homes.”

There are several reasons for the altered market landscape. Notably, prime property prices have largely stagnated over a ten-year timeframe. Prices have retreated back to where they were during the last financial crisis, quelled by changes in non-dom taxation and increased stamp duty – which means some PCL homes are now looking like relatively good value.

“For buyers who’ve been waiting patiently on the sidelines,” Dell believes “the tide has turned in their favour.”

Another “stark contrast” to the 2008 era is that foreign buyers can no longer purchase through offshore corporate structures to avoid inheritance or capital gains tax. “The playing field has changed substantially, limiting some of the fiscal benefits that once drew international capital to London,” notes Dell.

2008 Vs 2025: 3 key differences for the UK property market (according to Black Brick)

1. Stamp Duty Dynamics: During the 2008 crisis, the highest stamp duty rate was just 4%, and the government raised the 0% threshold to stimulate transactions. Today, overseas buyers of additional properties may face rates as high as 19%.
2. Interest Rate Environment: Following the collapse of Lehman Brothers, the Bank of England rapidly reduced base rates from 4.5% to 2% within months. Today, despite speculation of future cuts, the base rate sits at 4.5%, and dramatic reductions appear unlikely.
3. Change in Tax Incentives: The removal of historic tax advantages for buy-to-let investors has largely reduced the appeal of property as a yield-focused investment.

Camilla Dell: “People are understandably nervous right now. In times of financial fear, many pause, especially those who have suffered losses in the markets. But for the brave, there are real opportunities. One of our overseas clients, currently transacting, put it perfectly: ‘Buying a place in this turmoil seems crazy, but that’s why I think offering something like this makes sense. No one is transacting on anything anywhere.’

“As the global financial picture continues to evolve, the message is clear: London may be down—but for the right buyers, it’s far from out.”

‘We have been amazed by how much prime stock there is to choose from at the moment,’ says PCL acquisition firm, which has just secured an apartment in Kensington for less than half its original £30mn asking.

 

Property market predictions are proving unusually difficult this year, but a top acquisition firm has backed Savills’ view that PCL prices are likely to slide over the coming 12 months.

High-end stock continues to pile up across the prime postcodes, and Black Brick says buyers remain “extremely price sensitive”. Some eye-popping discounts are being secured as a result.

The firm is currently acting for an overseas buyer who is in the process of snapping up a six-bed flat in Kensington which originally went on sale for an “ambitious” £30mn. With no takers the owner gradually dropped the price down to a more reasonable £18m. An offer has just been accepted at £14.55mn, or £2,500 per square foot, less than half the original price. The team describes this as “outstanding value considering the property’s quality and location”.

“We have seen opportunistic overseas buyers come to the market who are looking for a deal, because they are obviously out there at the moment,” explained managing partner Camilla Dell.

“London will come back and now is a great time to buy prime assets. We have been amazed by how much prime stock there is to choose from at the moment, and there are quite a few people who need to sell to the extent that they are willing to sell at a loss. Others have owned their properties a long time and so they are willing to be pragmatic about price.”

Tom Kain, partner, said many of the vendors coming to the market have been waiting “literally years” for a good time to sell – from Brexit to the pandemic, through the outbreak of war in Europe and the Middle East, the cost of living crisis, and the 2024 General Election: “They have got to the point now where they can’t just sit it out any longer”.

Dell predicts house hunters will have a “solid window of opportunity” before prices start to increase in 2026: “This is the moment when the really smart money is buying”.

“I have never seen such a huge variation between the main forecasts,” she added. “Usually, the main estate agency forecasts are less than a point apart, but this time the differences are huge. My reading is that none of the agents really know where the market is headed next year and beyond.”

The firm suspects that Savills’ more conservative view of the potential for price growth will be closest to the mark: “Sellers are having to be very realistic and willing to sell at really big discounts in order to achieve a sale in the current market,” said Dell, but caveats that the reality is likely to be “far more complicated and nuanced” with certain property types in certain locations selling strongly and others continuing to dive: “Forecasts are not gospel, and London is a very complex market. There will be different outcomes in different parts of the capital. We continue to see a lack of supply for best-in-class family homes with gardens and parking in the most desirable streets of prime London, around Notting Hill for example, where bargain hunters may be disappointed.”

Other key trends flagged for 2025 include: heightened competition for big-ticket rental homes, as international HNWIs navigate the new non-dom rules; and further growth in off-market selling – it’s estimated that 50-60% of PCL properties are now discreetly marketed without ever hitting the portals. “I am on perhaps 50 WhatsApp chats to keep up with off market sales,” added Dell.

As a ‘painful’ Autumn Statement looms, Black Brick boss Camilla Dell shares her views on what the Chancellor should address.

By Camilla Dell

Ever since Sir Keir Starmer stepped into the Downing Street garden and issued a warning that the forthcoming budget would be “painful”, commentators have been predicting a whole range of possible tax raids, writes Camilla Dell.

Black Brick’s view is that imposing indiscriminate tax hikes is a short sighted approach. What a Government looking for growth, prosperity, and a healthy, active housing market should be doing is encouraging people to buy, sell, invest, and, most of all, remain in the UK.

Capital Gains Tax

It is widely anticipated that CGT for second home owners and landlords will be increased from a current maximum rate of  24% to up to 45%. Across the UK, landlords have already begun voting with their feet and selling up – Rightmove has revealed that almost one in five of homes currently for sale has previously been rented, compared to 8% back in 2010.

But CGT is only the latest travail to have hit UK landlords in recent years – they have already endured the phasing-out of mortgage interest tax relief, tighter rules on tenant evictions, and more onerous safety regulations.

And this gradual squeeze has had unintended consequences which have rippled right through the housing market.

George Osborne poured glue into the housing market when he increased stamp duty and ended landlords’ right to have a mortgage as a tax deductible expense.

George Osborne poured glue into the housing market when he increased stamp duty and ended landlords’ right to have a mortgage as a tax deductible expense.

It did not solve the housing crisis and it has created a really bad environment for renters. There is not enough supply, build to rent has not filled that void, and landlords have just been battered in the press when most of them are providing an excellent service. You have now got dwindling supply and that is a really bad thing.

In Cornwall, Anna Sharp of Black Brick’s country department, is particularly concerned about second home owners, who are simultaneously being hit with Council Tax surcharges, and the end of the furnished holiday lettings tax regime, which had excluded them from the end of interest rate relief.

“All of this is affecting investment buyers,” she warned. “Holiday let bookings are down 37% in Cornwall this year, so change would have occurred naturally. This is forcing a lot of people to sell, but will not solve the housing crisis in Cornwall, because a lot of these homes are priced above £500,000 and local buyers are not able to afford them.”

Non Doms

One change the Government has already confirmed is a dismantling of the Non Dom tax system, which currently allows high net worth individuals to live in the UK and pay tax on their UK income only. Despite this, the latest data shows that in the 2022/23 tax year the 74,000 Non Doms paid, collectively, £8.9bn in tax.

“If we get rid of Non Doms, we are just waving that off,” said Tom Kain, a Partner at Black Brick.

Let’s hope that Rachel Reeves is now finally listening to tax experts. Rumours are that the Chancellor is now considering watering down the changes amid concerns it will raise no money.

Inheritance Tax

The other big issue is IHT, currently charged at 40% of estates worth more than £325,000. In reality, however, there are many exemptions and only 5% of deaths are taxed in the UK, often at much lower rates. Older homeowners have been particularly spooked by the prospect of paying more and, possibly as a result, another trend highlighted by Rightmove has been a surge in the number of large houses for sale. “I definitely saw this trend emerging in the last year of people who probably should have moved in their late 70s and early 80s but had put it off because of the pandemic starting to downsize,” said West Country specialist Rupert Stephenson, of Black Brick’s Country & Coast Department.

“They wanted to quickly pass on their wealth to their children.”

Stamp Duty

Black Brick’s Rupert Stephenson thinks that pushing older homeowners out of their homes with the threat of higher taxes is unfair. A more humane, effective alternative would be to use less stick and more carrot.

Late last month, the Organisation for Economic Co-operation and Development (OECD) called for Stamp Duty, which it argued hinders people from moving to pursue better job opportunities or downsizing, to be scrapped.

Stephenson thinks that getting rid of Stamp Duty for both downsizers and first time buyers would get the property market moving again. “It would be good for the economy as a whole – house builders, white goods purchases, you name it. Downsizers need to be encouraged, but punishing them with tax is social engineering. People want stability, not loads of changes all the time.”

An influx of new permanent residents since the pandemic ‘has changed the dynamic for many towns in Cornwall’, says Black Brick.

Young professionals are “flocking” to the West Country, says buying agency Black Brick – which set up a Coast & Country division earlier this year to tap into the movement.

“The world has changed since the pandemic; from 2021 we’ve experienced a huge influx of professionals moving to the country,” explains Anna Sharp who heads up Black Brick in Cornwall. “For many ‘working from home or ‘#wfh’ was a phrase we had never even heard of before let alone thinking that it was an option. The world opened up, as did opportunities for many.”

While Sharp flags particular interest from younger professionals in tech, consultancy and creative industries, Rupert Stephenson – who leads BB searches in Devon, Dorset and Somerset – flags rising interest from more middle-aged relocators. “We are getting more and more enquiries from clients in their 40s, 50s & 60s who have moved down to the West Country permanently from places like Oxfordshire, Kent, London and Surrey,” he says.

One symptom of this is “much busier roads over the winter months,” says Stephenson, while Sharp says Cornish hotspots such as Penzance, Penryn, and Newquay “have never felt more alive”, as more permanent residents move in.

Mayfair-based Black Brick was set up by Camilla Dell in 2007, and has become one of the best-known and successful buying agencies in prime London and the Home Counties. Speaking about the move into the West Country in March, Dell told PrimeResi she plans to expand Black Brick services into other parts of the UK this year.

Anna Sharp, Black Brick in Cornwall: “The world has changed since the pandemic; from 2021 we’ve experienced a huge influx of professionals moving to the country. For many ‘working from home or ‘#wfh’ was a phrase we had never even heard of before let alone thinking that it was an option. The world opened up, as did opportunities for many.

“Many young professionals whether they work in tech, consultancy, or in the creative industry, to name a few, now can have a fantastic career or run a successful business in parts of the world they never thought were possible. Who would have thought you could wake up in the morning and go for a surf or a yoga lesson on the beach before work whilst being able to be online ready to work by 9am, coffee in hand, working from many of Cornwall’s fantastic working spaces?

“This has changed the dynamic for many towns in Cornwall, with the gentrification and development of areas such as Penzance, Penryn, and Newquay to name a few. Coffee shops have sprung up creating co-working spaces, yoga studios, creative hubs, and workshops; all of which appeal to Millennials and Gen Z. These areas of Cornwall have never felt more alive, creating a very exciting time to be living in a place I am lucky to call home.

“Many families and early retirees are still looking to relocate to the south west and demand remains strong, with many families searching for ‘the good life’, whereby their children can grow up near coastal or country environments. Typically, this demographic of buyer keeps a smaller property in the city and commutes a few days a week whilst they have for a larger home in the country with space and good schooling nearby as their main home.”

Rupert Stephenson, Black Brick in Devon, Dorset & Somerset: “We are getting more and more enquiries from clients in their 40s, 50s & 60s who have moved down to the West Country permanently from places like Oxfordshire, Kent, London and Surrey. They can work remotely now from almost anywhere in the world since Covid and there is often secondary accommodation which enables clients to have a really good second income from holiday lets or glamping opportunities on site. It’s now far more acceptable to work away from the office and, with such a good communications network in the West Country these days (fast fibre was installed almost everywhere a few years ago and Starlink fills in the gaps on remote places like Dartmoor, you can get 300mbs and 4/5G almost everywhere now), you can be sitting on your boat in the harbour or on a beach or a cafe and still be working (as I am now actually!!).

“With the West Country still offering relatively good value for money compared to London, Home Counties, and the Midlands, it kind of makes sense to cash in and move further afield for a more healthy, vibrant lifestyle, away from the traffic and the daily grind, to live the dream – there’s a wonderful food culture with Michelin star restaurants and gastro pubs, the beaches are world-class, the schools are top quality and there is plenty to do in the winter, country walks, rural sports and sophisticated cities like Bath, Exeter and Truro to visit.

“Interestingly, I have really noticed how much busier the roads are over the winter months here in the West Country in recent years since Covid, bearing testament to just how many main homeowners have moved here in recent years. Some of them already had second homes they have moved into permanently, others have followed and moved ‘lock, stock and barrel’ – when we did it 15 years ago people thought we were mad – not anymore!”

Longstanding firm’s flurry of acquisitions have included a super-prime townhouse in Knightsbridge, secured at £3.5mn below the original asking.

Echoing other reports from across Prime Central London, buying agency Black Brick has reported its busiest January to date, with a flurry of deals and a book of clients with budgets ranging up to £25mn.

Among the acquisitions completed by the 17-year-old firm over recent weeks was a handsome seven-bed just around the corner from Harrods, secured at £3.5mn below its original asking price.

Acting on behalf of clients with a budget of between £8mn to £10mn, the team needed to find a well-presented four/five-bed in either Mayfair, Belgravia or Knightsbridge with both air con and a lift – potentially a tough ask.

After months of searching, the perfect house cropped up in May of last year on prestigious Hans Place – with the bonus of a 48 ft west facing garden – although it was asking significantly more: £13.5mn.

The seven-bed property was tracked throughout 2023, as various price reductions brought it closer into range; terms were eventually agreed in December at a “competitive” price of £10,033,560 including all the furniture (the rate worked out at £2,385 psf, 4% less than the most recent sale on the street). Contracts were exchanged in less than three weeks.

Other recent purchases included an “immaculate” family home on Clapham Common West Side, acquired for a family relocating back to London at £5.5mn, and a three bed apartment in Chelsea – tucked away at 20% below the asking.

The firm has hinted at some “exciting” plans for the year ahead, including a foray into other markets around the country.

Camilla Dell, Black Brick’s Managing Partner: “We have started January with a book of motivated clients looking for properties ranging from £1.5m up to £25m, and I cannot remember a busier January. Long may that continue. 2024 has gotten off to an incredible start for Black Brick. We exchanged contracts on a number of properties for clients in the run-up to Christmas, achieving record discounts from original asking prices, and we have a book of extremely motivated clients leading us into the first quarter of 2024. I am incredibly proud of the entire team and of having a business that has proven to be a market leader in the world of buying agencies for the last 17 years. We have exciting plans for 2024, including expansion into other parts of the UK, so watch this space.”

Mayfair-based Black Brick has sourced 23 properties on behalf of its clients this year, including two “rare treasures” in Chelsea and Knightsbridge – and an apartment overlooking the Eiffel Tower in Paris. “The increase in the volume of clients we are looking after this year demonstrates the value that buyers are placing on having a professional to represent their interests in a challenging market,” says boss Camilla Dell.

High-profile London buying agency Black Brick has revealed how and where its clients have been spending their money over the last 12 months.

The Mayfair-based firm has secured a total of 23 properties on behalf of its client base since January (up from 21 in 2022); highlights being an off-market apartment overlooking Kensington Palace Gardens, a double-fronted family home in Chelsea, and an apartment with views of the Eiffel Tower in Paris (marking the team’s first acquisition in France).

UK buyers were behind nearly a third of the purchases (30%), followed by those from the US (20%), West Africa (15%), Italy (10%), Switzerland (5%), Canada (5%), UAE (5%), Singapore (5%), and Bermuda (5%).

66% of BB clients have bought with cash this year, compared with 34% last year, and SW1 has proved the most popular postcode.

Nearly two-thirds (65%) were purchasing their primary home, with 30% buying for investment, and the remaining 15% as second homes. Last year, that split was quite different: 77%, 14%, and 9%.

The largest discount negotiated from asking was 15% (on a property in Montagu Court in Marylebone).

Camilla Dell, Managing Partner, and Founder of Black Brick: “It has been an interesting year for the Prime Central London property market. The increase in the volume of clients we are looking after this year compared to last year demonstrates the value that buyers are placing on having a professional to represent their interests in a challenging market. We have seen a dramatic increase in cash buyers, with the number of cash buyers doubling year on year. This demonstrates that for many high-net-worth buyers, the use of finance is discretionary. The pivot to cash was inspired by interest rates, which jumped from 0% in 2021 to 5.25% today. When interest rates were low even some very wealthy high net worth buyers used mortgage finance, mainly because it was a simple way of protecting themselves from inheritance tax which is only charged on the equity you own in a property.

“Now clients, particularly younger people, are rethinking that strategy. Older clients who are more concerned about legacy planning are also reverting to cash deals and using jumbo life insurance policies to help protect their heirs from massive future tax bills.

“The rise in investment buyers is also an interesting trend. For cash buyers, the buy to let market is still compelling as a long-term hold and with rents having risen significantly and forecast to rise a further 18% over the next 5 years, this sector continues to attract investment, particularly from corporate buyers.

“This year many of our clients have been focused on buying apartments in prime central London, close to transport links and a great high street. A key requirement this year has been air conditioning, or the ability to install it. During the pandemic our clients were very focused on buying property with outside space, but this rarely features as a must have requirement today. We’ve also noticed a real lack of appetite from clients wanting to do any work to a property with most preferring to buy a property that is turn-key or in excellent condition. Borrowing money to fix up a home is expensive, and research by Rated People suggests the cost of home renovations has shot up 40 per cent since 2020. Good builders are booked up months in advance. People might consider a renovation project if the property is really special. But the days when people would deliberately opt for a wreck they could add value to are gone. Building work is stressful, time consuming, and expensive, and the profit margins have been seriously eroded.”

“We have also witnessed stiff competition for best in class homes this year. Two of Black Brick’s recent deals illustrate just how hot London’s market can get when a rare treasure comes up. In August we helped French clients upsize to a larger home in Chelsea Green. Other buyers were also sniffing around the super double-fronted house we found them on Burnsall Street, and we advised our clients to offer £6.3m (slightly above asking price) in order to secure the deal.  Another client was after a lateral flat with a prestigious address. We helped them find a two bedroom property on Cadogan Square– arguably London’s best garden square – and helped them navigate a competitive buying process. Since homes like this don’t come up very often, we advised our clients to offer £4.55m and they were thrilled when their bid was accepted. Homes like these will continue to outperform in 2024.

Dell added: “Looking to ahead next year, the market is likely to stay subdued because of continued higher interest rates and the looming general election, however PCL remains a desirable, safe place to buy, particularly for those seeking long term capital growth. As a global city it is not surprising that Black Brick’s client list represents buyers from every continent on earth.

“These buyers are attracted to London for many reasons: its work opportunities, its great schools and universities, and its cultural and social life. Britain’s comparatively stable and moderate political system has particularly attracted American buyers nervous about the potential for Donald Trump to return to the White House next year, and keen to take advantage of the strength of the dollar. There are also early suggestions that Middle Eastern buyers, who have been property shopping in the British capital since the 1970s, will see now as a good time to buy in a safe and stable location. A London investment is unlikely to net them instant capital gains, but in a diverse portfolio there is always space for an ultra-safe and stable investment.”

Black Brick’s Deals of the Year

Best Off-Market Deal: York House, Kensington, W8 (£9.5mn)

“York House is one of Kensington’s most sought-after desirable mansion blocks due to its location, security and privacy. Apartments rarely come up for sale in the building, but when they do, they tend to sell quickly. Black Brick’s clients had been looking unsuccessfully on their own before appointing them and had recently lost out on an apartment in the area. Black Brick were first in the door to view this spectacular top floor apartment with high ceilings and far-reaching views. They successfully secured the apartment for their client before anyone else had viewed it.”

 

Managed Sale of the Year: Queensberry Mews West, South Kensington (£3.45mn)

“Black Brick sourced this stunning dual aspect, three-bedroom three-bathroom mews house, with air conditioning and off street parking in South Kensington several years ago for its Irish clients. They had enjoyed using the property, but due to ill health could no longer travel to London. They contacted Black Brick to discreetly help find a buyer. Through their network the team successfully identified a fantastic cash buyer who bid more than their clients had paid for it in 2019 and transacted within four weeks. Our clients were delighted with price and speed of the transaction.”

 

International Deal of the Year: 7 Champ de Mars, Allée Adrienne Lecouvreur (€3.5mn)

 

Best Pied-à-Terre: Cheniston Gardens, Kensington (£1.7mn)

 

Best Family Home (Outer Prime London): Southway, Golders Green (£2.895mn)

 

Best Block Investment Deal: Ashburn Place, South Kensington (£6.155mn)

 

Best Prime London Family Home: Burnsall Street, Chelsea (£6.28mn)

 

Best New-Build: Capella, King’s Cross (£2.4mn)

 

Biggest Discount of the Year: Montagu Court, Marylebone (£1.7mn/15%)

 

Prime Flat Deal of the Year:  Cadogan Square, Knightsbridge (£4.55mn)

 

City Pad of the Year: Triptych Bankside (£2.55mn)

As apartment living regains its appeal amongst PCL’s elite buyers, PrimeResi picks some of the standout deals from the last few months, from top-spec penthouses to grand period laterals.

Demand may have fallen off a cliff during the pandemic, but 2023 has seen apartments mount a resurgence in PCL, accounting for a growing share of sales as lockdown memories fade: 44% of £5mn+ transactions across the capital in the year to last month, up from 40% last year and just 28% in 2021.

This year marks a “clear shift away from a time when larger homes with private outdoor space topped every buyer’s wish list,” noted Frances McDonald of Savills recently, and many other firms have reported renewed appetite for apartment living.

Buying agency Black Brick recently revealed that 90% of deals it’s been involved with so far this year have involved flats, up from 43% last year. “Buyers are clearly bored of being out in the sticks, and are looking for the excitement of city centre living once again, particularly if they need to show their faces at the office,” said the firm’s Camilla Dell, while Jo Eccles of Eccord noted how large lateral living spaces and generous proportions are also driving the demand, particularly for new-builds, which provide high levels of security and service. Planning crackdowns on large-scale new-build apartments are also widely tipped to push up prices for existing stock.

Here are some of the standout examples to change hands so far this year, from marquee units in prestigious new-builds, to unmod projects with ultra-luxe potential…

Clarges Mayfair, Mayfair

Agents recently confirmed the sale of a near-£40mn penthouse overlooking Green Park.

Regarded as one of the very best apartments in the area, the ultra-luxe residence at Clarges Mayfair, British Land’s landmark development on Piccadilly, has a c.2,000 sq ft roof terrace with a spectacular vista taking in the capital’s skyline.

David Turner Property acted as joint sole agent with Knight Frank in the sale of the “special” property, which went through a few weeks ago and marks one of the largest deals in London so far this year; the purchase price is undisclosed, but the guide was set at £39.5mn. PCL agency Rokstone introduced the buyer.

Designed by Squire & Partners and completed in 2017, the super-prime development delivered a total of 34 residences with interiors by Martin Kemp Design.

Residents have access to a five-star private wellness spa with a 25m swimming pool and fully-equipped gym, sauna and steam room, along with a private cinema, meeting rooms, residents’ lounge and 24-hour concierge service.

The site was originally acquired back in 2012, and the first tranche of new-build apartments were released – to great fanfare – in 2014. The scheme went on to smash local price records, and the developer confirmed the final unit had been sold at the end of 2021.

Grosvenor Square, Mayfair

An unmodernised apartment on Mayfair’s Grosvenor Square was tucked away over the summer at an impressive £16mn.

The five-bed mega-lateral, positioned on the first floor of a red-brick block opposite The Connaught, went through at £3,900 per sq ft – marking the highest rate achieved by an unmod apartment in the neighbourhood in the last 12 months.

An unnamed British buyer acquired the “landmark” property as a London family home, according to local agency Wetherell, which had brought it to market for the first time in over three decades. We hear there were several interested parties and serious bidders, including some other residents of the building.

The 4,100 sq ft residence has three-metre ceilings, grand proportions and a barnstorming back story. During the 1920s, it was the London home of Le Mans racing driver Bernard Rubin, one of the legendary “Bentley Boys”, a quartet of famous racing drivers who used to live at 49-50 Grosvenor Square.

One Kensington Gardens, Kensington

One of the best apartments at One Kensington Gardens – a c.5,500 sq ft park-facing example guided at £23mn – was picked up by an unnamed overseas purchaser.

There are only five of these super-sized five-beds in the prestigious development opposite Kensington Gardens and Kensington Palace, designed by David Chipperfield Architects and completed back in 2015.

The successful sale highlights the enduring appeal of the Prime Central London property market to overseas buyers, said Harrods Estates, which collaborated with Strutt & Parker on the transaction.

The striking nine-storey scheme replaced the 1950s-built Palace and Thistle hotels, and the De Vere Gardens mansion block. It now houses 97 generously proportioned residences, specced-out with exotic bespoke materials, full underfloor heating, comfort cooling, and state-of-the-art kitchens.

Residents have access to a full suite of amenities, including a 24-hour dedicated concierge, valet parking, health spa, 25m indoor swimming pool, a private health and fitness centre, sauna and steam room, and private treatment rooms.

A £25mn-plus deal went through at the building just before the UK entered the first Covid-19 lockdown.

St James’s Place, St James’s

An East Asian buyer swooped on a “spectacular” unmodernised apartment just around the corner from Buckingham Palace earlier this month.

The 4,025 sq ft lateral on St James’s Place – directly overlooking Green Park – was listed a few weeks ago at £21.95mn by locally-based agency Oliver Bernard, who described it as a “once-in-a-lifetime” opportunity.

A deal concluded, off-market, at a rate of £5,093 per sq ft, which is said to be a new area record.

The apartment’s position, facing west and up on the fifth floor of the six-unit building, gives a pretty unbeatable vantage point over the 40 acres of royal greenery opposite, and there’s a large balcony to make the most of the vista. Inside, there’s four bedrooms, and a huge reception room with floor-to-ceiling bifold doors. Underground parking, a storage room in the basement, and 24-hour concierge services came as part of the package.

The Bryanston, Hyde Park

Another big-ticket sale was reported at Almacantar’s super-prime resi project The Bryanston, Hyde Park.

A 2,921 sq ft lateral at the Rafael Viñoly-designed building, guided at £18.1mn, was tucked away by Knight Frank’s PCL developments team, achieving a rate of around £6,000 psf.

The luxury apartment up on the 14th floor came with three bedrooms plus a study, and panoramic views across the park. The buyer was from Asia Pacific.

Completed last year, The Bryanston is now the tallest resi development on Hyde Park and has delivered a total of 54 high-spec apartments. Facilities include a comprehensive health spa and wellness centre with 25-metre pool, plus a cinema and a “magical” children’s play space.

The Broadway, Westminster

Northacre reported chalking up over £30mn worth of sales in a single week at its latest project in PCL, including one of the marquee penthouses.

11 residences, including a shell and core penthouse, transacted in the seven-day, £32mn burst at The Broadway in Westminster.

The batch of deals followed a £50mn flurry in November 2022, when another penthouse went through at a rate of £5,200 psf.

Located on the former Met Police HQ site (New Scotland Yard) in SW1, the 258-unit project is being pitched as “the wellness capital of London.”

Designed by architects Squire and Partners and built by main contractors Multiplex, the six Art Deco-inspired towers house 258 apartments across 355,000 sq ft of high-spec resi space, including 16,000 sq ft of health and wellness facilities.

W1 Place, Marylebone

A penthouse at a luxury new-build scheme in Marylebone was sold for £6.3mn amid competing bids.

The “spectacular” apartment at W1 Place on Portland Street is the larger of two penthouses at the forthcoming 37-home development by Concord London.

The three-bed unit – in a prime corner position – had been on with a number of agents, but the newly-launched PCL branch of boutique agency Anderson Rose ended up sealing the deal for the “discerning” purchaser, who paid close to the £6.595mn asking.

Particulars showed a large open-plan living/dining/kitchen space, along with two bedroom suites, a further bedroom and bathroom, and a knockout roof terrace with views across the London skyline.

Kensington Palace Gardens, Kensington

A super-rare apartment on London’s Kensington Palace Gardens sold for £21.5mn over the summer, according to official records.

Listed earlier in the year, the near-5,000 sq ft residence sprawls across two floors of a modernist block on the exclusive private road, and was described by agents as “the ultimate secure ‘pad in town’”.

It usually costs some way north of £100mn to have a KPG address, so this was a real collector’s item; the two/three-bed came with a double-height drawing room, and galleried study area, along with porterage, parking, plus some communal gardens to the rear.

Greybrook House, Mayfair

Marking one of the first significant resi deals of 2023, luxury agency Beauchamp Estates confirmed the sale of a 2,500 sq ft apartment at Fenton Whelan’s Greybook House on Brook Street, asking £8.95mn.

The three-bed lateral was picked up by a “discerning London-based family”, said the firm; a rate of £3,345 psf was achieved.

Fenton Whelan originally unveiled the project in 2018, serving up four lateral residences with prices ranging up to £25mn and perks including 24-hour concierge services and valet parking. The option for a bulk-buy was floated in 2018, for which agents were quoting an asking of £46mn.

Internally, the spec includes custom engineered oak flooring, 2.6m high doors, bespoke sliding walls with antique bronze ironmongery, and Bianco Perlino and Emperado patterned marble flooring.

The Art Deco block, dating back to 1929 and in a prime spot between Claridge’s and Bonhams, was originally designed by architects Sir John Burnett and Partners and served as the London headquarters and showroom of world renowned piano manufacturers, Bechstein.

 

TALKING HEADS: PrimeResi investigates the increasing importance of peace of mind for today’s elite buyers, featuring insight from some of PCL’s top agents, developers, designers & security experts….

London may be no different from other world cities in this regard, but recent media reports have painted a particularly grim picture of the capital: widespread looting, armed burglaries and attacks on high-profile personalities in broad daylight have all featured on the front pages over the summer – and security concerns have even been cited as a factor in some A-listers’ decisions to move out to the country.

PrimeResi canvassed opinion from some of the top names in buying, selling, design and development to find out what’s happening on the ground: are HNWIs indeed getting jumpy, or is this just another media storm; how important has security become in the decision-making process; and which practical measures are being installed in the most desirable homes to allay concerns?

“There is an unmistakable surge in the significance of security considerations for high-net-worth individuals,” according to Simon Barry of top-end agency Harrods Estates, while Vic Chhabria of London Real Estate Office describes security as “one of the top non-negotiables” amongst today’s top-end buyers.

We’re told buildings and developments with 24hr security, concierges and porticos are very much in for purchasers harbouring worries, but bunkers and panic rooms are still a step too far for most. Private roads are proving especially popular, reports Marc Schneiderman of Arlington Residential, who has sold six houses on one such turning in north London – all to buyers attracted by the heightened safety.

Officials stats suggest London’s crime levels remain moderate on a global scale, points out Camilla Dell of buying agency Black Brick, who has found convenience and amenities to be higher-up the wish list for HNW buyers than security, but developers are undoubtedly taking note: “The value of feeling secure cannot be overstated,” summarises Kevin Kuok, whose firm is behind one of the new wave of PCL schemes prioritising peace of mind…

Peace of mind and a sense of safety have become invaluable commodities for PCL buyers

Simon Barry, head of new developments at PCL estate agency Harrods Estates: “The demand for luxury properties in prime Central London remains unabated, but there is an unmistakable surge in the significance of security considerations for high-net-worth individuals.

“Today, peace of mind and a sense of safety have become invaluable commodities for prime Central London buyers. These individuals lead high-profile lives and have become acutely aware of the potential risks and vulnerabilities they may face. Fortunately prime central London is perceived to be a safe space and with armed protection officers guarding the many embassies and other high profile corporate HQ buildings which share London’s smartest residential locations, residents know that they can rely on a level of protection and visibility not available in many comparable cities.

“Our prime London clients are looking for more than just luxury living spaces; they seek properties that can be transformed into secure havens. Privacy is paramount, but for some nationalities advanced security features are often non-negotiable. High-net-worth individuals often have unique needs, such as panic rooms, biometric access controls, sophisticated CCTV systems, and dedicated security staff. Additionally, the integration of smart home technology plays a significant role in providing real-time monitoring and control, ensuring residents can feel safe and protected at all times.

“Agresti, a renowned luxury brand, has elevated the concept of panic rooms into an essential status among the super-rich many of whom may prefer to live in detached houses with secure grounds outside more central parts of London. These bespoke sanctuaries seamlessly combine cutting-edge security technology with luxurious aesthetics, catering to the unique needs of those seeking a sense of opulence and safety within their properties. Discreetly concealed behind crafted facades, Agresti’s panic rooms are tailored to each property’s layout and the homeowner’s lifestyle, offering a multifunctional and indulgent space during times of distress.

“Recognising this emerging demand, leading developers have swiftly adapted to incorporate state-of-the-art security measures into their projects. These visionary developers are collaborating with security experts to create residences that employ cutting-edge surveillance systems and have secure entry protocols. New developments offer an additional layer of protection which a traditional London townhouse accessed from the pavement, simply can’t provide.  Alongside more overt security systems, passive measures also have a role to play when buyers chose where they want to live: they may avoid buildings which are over-looked or too close to other buildings, and where the entrance doesn’t allow for a secure drop-off with drive-in, drive out.

“London is generally regarded as safe, and the capital’s enduring allure for international HNWs is also linked to its reputation for safety and stability. The sight of luxury cars parked on the streets of Mayfair and Belgravia is testament to the city’s ability to provide an environment that caters to the unique security needs of HNWs.”

More and more high end buyers are seeking buildings or developments with 24hr security

Marc Schneiderman, director at NW London-based estate agency Arlington Residential: “We are not seeing a trends of HNWIs moving out of London, but we are certainly noticing that more and more high end buyers are seeking buildings or developments with 24hr security.  There are several roads in central and north west London which are gated, with vehicular gates prohibiting anyone uninvited from driving into the road; these roads also have 24hr/seven day a week/365 days a year security personnel constantly on surveillance. One such street, is Courtenay Avenue in Highgate. Located immediately opposite Kenwood House, this private gated road has only 23 houses and is extremely desirable.  I have acted on the sale of six houses in this road, and each buyer whom I sold to, has bought the property because of the security this specific road offers.

“Recently, we have received numerous enquiries from overseas and UK buyers in equal measure, looking for apartments in York Terrace West, Regent’s Park. This is the only terrace in Regent’s Park that is gated and has a visible porter’s lodge staffed day and night. Such is the demand for flats in this location because of the terrace’s unique security arrangements, that we achieved in excess of £3,700 per square foot for the last flat we sold earlier this year.”

There are examples of the very wealthy putting together a massive estate by buying every house and farm that comes onto the market

Edward Heaton, founder of London & country buying agency Heaton & Partners: “We’ve had examples of owners of large country estates wanting to buy any adjoining properties coming up for sale. There are examples of the very wealthy putting together a massive estate by buying every house and farm that comes onto the market.

“It’s not uncommon that you have people literally buying the house next door for extended family, we’ve just acquired a house next door for a client in the countryside where he bought the house for his staff to move into. He also wanted it for security as it was a little too close for comfort to the main house, he wanted to secure his own privacy.”

Most HNW/UHNW buyers worry about their security in any city, not just London

Camilla Dell, managing partner at PCL buying agency Black Brick: “There’s been a lot of talk amongst certain HNW’s about London’s increase in crime and how terrible things are and they are leaving. Donald Trump’s feuding with London Mayor Sadiq Khan also contributed to this rhetoric. As a Londoner, having lived and worked in London my whole life, my own personal experience is that I haven’t noticed an increase in crime. I continue to wear my wedding ring, eternity ring and new apple iWatch and I have never once felt threatened or at risk walking the streets of London. As a buying agent, I walk the streets a lot. I’m not trying to take away from other people’s negative experiences, but I do think a few high profile people have jumped up and down about crime in London but they aren’t leaving London for the crime. They are leaving because they prefer to live in countries such as Dubai with lower tax rates, or for other business reasons. London’s crime index is 53.8 with a safety index of 46.2 meaning we have a relatively moderate crime level compared to other major cities around the world.

“I think most HNW/UHNW buyers worry about their security in any city, not just London. Buyers do love the security that new builds in London offer, having 24 hour concierge/security is a real benefit and that’s one reason why new builds have done so well, but not the only reason. In my experience security isn’t the main draw of a luxury new build, but more the convenience and amenities on offer. Clients seeking total security will often enlist the services of a private security firm to install CCTV and other security measures. Some of my clients have on-site security living in their homes 24/7 but these are rare cases and more about the profile of the client than crime rates in London.

“For clients where security is important, we work with a few trusted security firms, many are ex-police officers who advise our clients on how to make their homes more secure. Security isn’t just about preventing burglaries and intruders but also cyber criminals – something which is often overlooked.”

A physical deterrence, a residential security team, is by far the most effect security measure

Jasper Adams, MD of global security firm Team Fusion: “The importance of security should, in theory start to become more prevalent in the homebuyer decision-making process.  More and more communities are clubbing together for low-level security patrols – particularly at night.

“CCTV and access control systems remain the priority for most. The challenge is making sure that they are being properly monitored! There really is little point having CCTV if it is not being monitored with the capacity to respond immediately. The sad truth is the Police response times are appalling – 45 minutes is fairly standard (and the perception is that the Police rarely attend burglaries).

“The security we provide to our clients properties is designed to deter criminals – prevention is always the best solution – and criminals will always look for easy targets. Our experience demonstrates that a physical deterrence, a residential security team, is by far the most effect security measure.  Technology is important, be that CCTV or sensors, but they are there to support the human rather than the other way round.

“We are seeing a greater demand for K9 solutions to augment physical & technical aspects, but they can be extremely expensive and require trained handlers or they risk becoming too domesticated.”

The value of peace of mind and feeling secure cannot be overstated.

Kevin Kuok, CEO of luxury developer Bellworth Developments: “London’s global city status and position as a major financial hub makes it a hugely appealing market for investment from both an international and domestic perspective. While the city is generally considered safe as a place to live, the value of peace of mind and feeling secure cannot be overstated.

“For purchasers at Lancer Square, our exclusive residential address in Kensington, home security is of paramount importance, especially since many of our clients are frequent travellers for both business and pleasure, whether they are in residence or not. Understanding this need, we have incorporated a plethora of security measures into the development of 36 homes.

“These security measures at Lancer Square include electronic video entry systems that allow direct contact with the concierge team, residences prewired for the future purchaser to install a security alarm of their choice, multipoint locking systems, and a 24-hour concierge. These features ensure that our residents can confidently leave their homes and belongings, knowing that they are well-protected even when they are away. By prioritising home security, we aim to provide our residents with the peace of mind they deserve in a bustling city like London.”

Having a dedicated staff member, such as a concierge, at the entrance or lobby of super-prime properties can play a pivotal role

James Waight, regional director at London estate agency John D Wood & Co: “In the prime and super-prime housing market in London, security stands as an essential pillar of desirability, particularly for overseas buyers seeking prestigious properties in the heart of the city.

“London’s discerning buyers, especially international investors, frequently prioritise properties equipped with garages and private gated drives. These features provide an extra layer of security, assuring a secluded haven amidst the bustling city. Garages offer a safe storage solution for luxury vehicles, while private gated drives grant an added sense of exclusivity and control over access to the property.

“In addition to garages and private gated drives, having a dedicated staff member, such as a concierge, at the entrance or lobby of super-prime properties can play a pivotal role in enhancing overall security. The presence of a concierge serves as a strong deterrent to unauthorised individuals, ensuring that only approved residents and guests gain access to the premises. Their vigilant monitoring and quick response to potential security concerns contribute significantly to the overall safety and peace of mind of the property’s occupants and owners.

“Buyers often seek reassurance through advanced security systems, such as state-of-the-art surveillance, access control technologies, and 24/7 monitoring. Additionally, discreet security integration is crucial to preserve the architectural elegance of the property while delivering unmatched protection.

“Furthermore, our buyers recognise the significance of cyber protection in today’s interconnected world. As cyber threats loom large, prioritising the implementation of stringent cybersecurity protocols becomes crucial to safeguard sensitive data and digital assets, particularly for international clients with properties worldwide.”

Security and safety is always one of the first questions I’m asked when showing a property

Toby Downes, London specialist at London and country buying agency Haringtons: “Like any other major city, London will always pose a risk of crime and sadly, the statistics do suggest that this risk is increasing. I would say that buyers in general are more concerned about crime and that this isn’t unique to just the high-end buyers. You can walk around almost any neighbourhood and majority of homes will have Ring doorbells and additional alarm systems.

“When dealing with high-end buyers, security and safety is always one of the first questions I’m asked when showing a property and buyers will always invest in state-of-the-art security systems if the home is not already fitted with one.

“PCLs most prestigious addresses tend to be serviced by private security firms paid for by residents. A large number of our clients, especially those who travel regularly, are drawn to new build developments with security measures and a 24 hour concierge and safety is the main driver in this decision, followed by the reduced level of property maintenance required.

“Whilst many high end buyers move out of London into large country homes, in my experience, crime is never cited as the major driver – the reasons are driven by the desire for more space and the reduced need to be in London due to remote working.

“Common security measures include surveillance systems, access control with biometric authentication, private security personnel, smart locks, secure panic rooms, and advanced alarm systems. As for extreme examples, some high-end properties might have features like bulletproof glass, fingerprint-locked wine cellars, facial recognition technology, and even tunnels for emergency escape.”

We know we have to think about security features from the concept stage, and how it can be seamlessly and flawlessly integrated into the property’s aesthetic

 

Alex Christou, co-founder of luxury development and interior design firm 1.61 London: “In recent years, all our clients are ensuring they have fully integrated security systems in their homes. In our latest development, Three Kings Mayfair, one of the biggest selling points is the fact it not only has high-spec security systems in place, but it is also located on the only private gated road in Mayfair and the building cannot been seen from the road offering complete privacy. This unique offering has been incredibly well received by prospective purchasers.

“Every project we undertake now requires a high level of security integration throughout. As a developer and interior designer, we know we have to think about security features from the concept stage, and how it can be seamlessly and flawlessly integrated into the property’s aesthetic. In addition to cameras, intercoms and panic alarms, wealthy clients are opting for panic rooms, walk-in safes and emergency exit plans. More recently, we’ve had several clients turn a bedroom in their property into a hidden panic room that can be shut off and secured immediately. The most extreme examples involve properties equipped with bulletproof windows, advanced facial recognition systems, retinal scanners, and even private helipads for emergency evacuations. As a luxury property developer, it is essential to take these concerns into account.”

Security is very much a key part of the decision-making

Simon Edwardson, head of sales at luxury developer Northacre: “Security and privacy have always been principal concerns for our clients, wherever they are located. We have found that individuals or their private representatives always consider levels of security, privacy and discretion as among the primary features that influence their purchasing decision. Security is very much a key part of the decision making.

“Northacre’s The Broadway is in the heart of Westminster, SW1, overlooking the Houses of Parliament, Westminster Abbey and Big Ben, with such locations demanding a high level of ambient security from which The Broadway benefits. This includes heightened security protocols in the area for major royal gatherings and political events such as this year’s Coronation. Its very location gives it the benefit of added and continual security at a national level, with strict protocols in use throughout the vicinity.

“The Broadway’s residents benefit from completely private world class amenities including 25m heated indoor swimming pool with vitality pool, sauna and steam room, fully equipped gym with the latest fitness technology, two personal training studios, two treatment rooms, two meeting rooms and a games and screening room. In addition, The Broadway offers full security compliment from point of arrival onwards with secure underground parking accessed by car lift, a 24-hour concierge and valet who know the residents personally and maintain the utmost discretion, another layer of personal security. There are numerous other security protocols on property including surveillance and also 24-hour security patrol of its central, pedestrianised street, Orchard Place.”

People don’t want bunkers and panic rooms, they want to live life

James Moran, head of London sales at prime property advisory Middleton Advisors: “There is an increased desire amongst London homeowners for security across the board, but particularly amongst second homeowners. Those who don’t reside in their London property on a full time basis are often leaving their home or apartment vacant for up to months at a time and want peace of mind that their properties and possessions are protected and safe when they are out of the country.

“Those concerned about security will be drawn to gated communities and high-end apartment complexes which offer unrivalled amenities such as concierge services, 24hr security, and the added privacy of enhanced entry systems. Particularly, if people have had concerns or issues before, this often becomes a non-negotiable part of the search.

“A balance is definitely required with security features; people don’t want bunkers and panic rooms, they want to live life. Large steel gates and high walls can be unsightly, remind residents of safety issues, and make the house less desirable should they decide to sell in the future.

“Some of the more extreme examples include: fog and smoke which can be coupled with LED strobe lights and a sounder (which can be painful) to increase disorientation of any trespassers using a blinding effect; small magnets attached to valuables which alert authorities upon the tiniest movements; biometric locks and facial recognition

“Looking forward to new technologies, particularly with AI, including heat detection and night vision which AI can decipher the difference between animals and trees moving and people within the house circumference.”

A percentage of buyers who would historically have looked for a house are now more amenable to look for an apartment

Will Pitt, senior director at luxury estate agency UK Sotheby’s International Realty: “I’m certainly having more conversations with people regarding crime and security than I was five years ago. High-end homeowners/buyers sometimes need to think carefully about walking down the street with an expensive watch, and the extent to which London is struggling with knife crime hasn’t gone unnoticed, which concerns some buyers looking for Prime Central London property in particular.

“However it is important to note that every major city deals with certain levels of crime – and high end buyers who have owned and lived in multiple cities are aware of the dangers and are perhaps less phased.

“I’m finding that a percentage of buyers who would historically have looked for a house are now more amenable to look for an apartment. Apartments provide an added layer of security because they don’t have a front door leading out onto the street, so security-conscious buyers see value in an apartment block and especially one with a concierge. The premium that one pays for a branded residence is offset by the idea that there are a number of staff in the building – one doesn’t have to have their own private security team anymore. Many of these branded residences are being designed from the outset with security in mind, either with cameras or physical security in the form of doormen.

“High-end homeowners/ buyers are installing a lot more CCTV. While CCTV used to be in the form of a VHS tape, it can now even be installed via your mobile phone – it’s accessible around the world and across all price categories. Similarly, intelligent doorbells and cameras report into one’s mobile phone, so the homeowners could be on a remote beach but still be notified. There are also smart fingerprint locks on front doors and mobile phone locks.

“The most extreme examples I’ve seen are panic rooms, which have been around for a while, kitted out with communication safes and separate air intake.

“The overall objective for many high-end homeowners/buyers is to ultimately remain invisible and anonymous, which reflects the idea of ‘stealth wealth’.”

‘Lock up and leave’ security is incredibly appealing to UHNW hypermobile buyers

Vic Chhabria, founder of boutique luxury property agency London Real Estate Office: “Security has become one of the top non-negotiables amongst todays high net worth buyers, particularly amongst international buyers who prefer to purchase homes within high end apartment developments with on-site 24-hour concierge and security teams. This ‘lock up and leave’ security that apartments of this kind offer is incredibly appealing to UHNW hypermobile buyers who are often travelling for work and pleasure.

“Something we’re also seeing more frequently is requests for properties with designated ‘drop off’ porticos, which are located away from main roads to ensure a safe journey from their chauffeured cars or taxis. This is paramount for security but also for their privacy, something increasingly important, the higher profile the client.”

A previous client has invested in drones equipped with infrared cameras

Jerome Lartaud, co-founder of West Country property buying agency Domus Holmes: “Security is a huge concern for High Net Worth individuals – it always has and always will be along with privacy and discretion – but it also applies to people with more modest budgets as well, especially when buying a house in the countryside and due to the secluded nature of rural properties.

“Countryside properties are often a second home for the HNW Individuals. As they are occupied at irregular intervals and left vacant for large periods of time, these properties can become prime targets for criminals. To prevent burglaries, the physical security measures implemented must offer visual deterrence and physical protection as well.

“There are many options available when addressing security concerns in countryside properties: CCTV and smart home alarm systems are an increasingly popular choice. There are many benefits to a security system that can be operated remotely, however this does not offer a property any physical protection.

“In rural countryside locations, one of the main issues is police response time: by the time officers arrive at a property after an alarm has been raised, the intruders are often long gone. Physical security measures such as on-site guardianship offer an element of delay as well as deterrence.

“A previous client of ours (who we assisted with the purchase of a large country estate in Somerset with acres of garden and land, woodland in particular) has invested in drones equipped with infrared cameras: this is really good tech that can be programmed to do various flight paths across his estate as an extra security measure.”

 

90% of Black Brick’s deals involved apartments in H1 – up from 43% last year.

After falling out of favour during the pandemic, it seems demand for apartment living is well and truly back. A top buying agency in PCL has revealed that 90% of deals it’s been involved with so far this year have involved flats, up from 43% last year.

“Buyers are clearly bored of being out in the sticks, and are looking for the excitement of city centre living once again, particularly if they need to show their faces at the office,” said Black Brick in an update on its performance in 2023.

Other firms have also picked up on this trend recently, noting heightened demand for large lateral living spaces and generous proportions, especially new-builds, which offer high levels of security and service.

The latest analysis by Savills supports these observations: apartments have accounted for 44% of £5mn+ transactions across London year to date, up from 40% last year and just 28% in 2021.

Black Brick’s total deal numbers were up by 50% during the first three months of the year, compared to the same period last year. Demand for professional help has increased amid the challenging market conditions, said the firm. 90% of its clients were looking for either a main residence or an addition to their property portfolio; only one in ten were investors looking for properties to rent out.

40% of the buyers were British, and another 30% were from the USA. Others came from Bermuda, Italy and Nigeria.

The average discount to asking price achieved was 4%, which the team described as “good going since most of our buyers are looking for a really special property”.

Chiming with findings published by Coutts this morning, managing partner Camilla Dell noted the rising number of price cuts across the prime postcodes: “We are definitely seeing price reductions on vast numbers of properties right across PCL at the moment, including trophy homes in areas such as Mayfair, Belgravia and Knightsbridge,” she said, citing overpricing at the outset as the key reason: “Sellers are finally realising that if they want to sell, the price has to be realistic.”

Sellers are advised to have patience, while buyers should “avoid overstating their power” in the market, and “move fast” if a perfect property comes along.

Although overpriced homes are being corrected there aren’t crazy bargains to be had, added Dell: “To think that PCL is distressed and that prices are falling off a cliff would be far from the truth…It’s more of a recognition amongst sellers that the crazy inflated prices of last year are no longer being tolerated by buyers.”

It will take time for vendors to accept the fact that buyers are far more price sensitive these days, says Black Brick.

Transactions are likely to remain low in Prime London during the months ahead, as buyer and seller expectations remain out of alignment.

This is the prognosis from PCL buying agency Black Brick, which has reported a “very sticky” start to the summer, with buyers “far more price sensitive” than they were at the peak of the pandemic.

The firm suggests it will take time for vendors to accept this fact, and start pricing homes at the lower end of the PCL scale at a level to tempt interest. Until then, unfortunately, much of the market looks set for deadlock…

“I have found that there tends to be a long delay, in a market which is slowing, for that message to sink in for sellers that they need to be realistic about prices,” said managing partner Camilla Dell. “We are just starting to see prices coming down a bit – even where we have been previously told that a seller is in no hurry – and some sellers are becoming more amenable to negotiation.”

While there’s no sign of the double-digit price falls that were being predicted at the start of the year, the team is seeing a “very selective market” which has more in common with pre-pandemic times than with the rollercoaster journey since 2020.

“Buyers are still out there”, said the firm in the update to clients, “particularly cash buyers operating at the top end of the market, but despite healthy budgets they are not willing to pay over the odds for properties. They are also taking the time to be very choosy when it comes to location and specification. As a result, while prices are holding firm, the number of deals being made is the indicator which has taken a hit.”

“Those 2023 forecasts were always ridiculous,” added Caspar Harvard-Walls, a partner at the firm. “The problem was that they did affect buyer confidence and sentiment”.

He suggests the market is now undergoing “normalisation”, with interest rates no longer at a record low, and the race for space far less of a driving force: “We were just spoiled during the Covid-19 market…It was a false reality, a completely unusual set of circumstances. Now buyers are saying hold on, that property is the wrong price, and that is how it should be.”

The latest LonRes data showed PCL sales activity in April was 34.7% lower than in 2022, with the year-to-date total down more than 24%. The number of properties under offer was down 11% year-on-year.

The high-end sector of the market has outperformed, however – agreed sales above £5mn were up 26% on last year and are more than 50% above the average levels seen between 2017 and 2019.

Dell says the reason for the “two-tier” market is simple: “The people who are buying at the moment are wealthier clients who are less reliant on mortgage finance. They include overseas buyers who are still buying in London because of the weak pound, and they tend to have bigger budgets.”

The estate agency Strutt & Parker decided to retain its 2023 sales market forecasts last week, citing “renewed confidence” and “signs of recovery and stability” in around South East, East of England and Prime Central London as cause for a relatively bullish outlook.

At the national level, Strutts expects the average UK house price to drop by up to 5% through this year (something between a -5% and a 0% annual change), while Prime Central London could see prices either rise or fall by 3% (a -3% to +3% forecast range for the current year).

Prices in Prime London and around the UK are still on track to rise by between 10% and 15% over the next five years, according to the firm’s analysts.

The spectre of Corbyn may be laid to rest, but the threat of a mansion tax continues to haunt the streets of PCL as election chatter intensifies. Read the latest insights from some of the industry’s top names, including Aston Chase’s Mark Pollack, Black Brick’s Camilla Dell, Prime Purchase’s Charlie Wells, Winkworth’s Dominic Agace, Middleton’s Mark Parkinson & many more…

 

“Discussions around the general election have started to creep into conversations”, according to Christian Lock-Necrews, head of the Knightsbridge office at Knight Frank; following Labour’s strong showing at the local elections, and various manifesto murmurings, many other agents and advisors will be fielding questions about the possible impact of a change in government next year.

PrimeResi spoke to specialists from across the prime property sector to gauge the general feeling: what would a Labour-led government mean for the market, and which potential policies are keeping buyers and sellers up at night…

 

A Labour Government under the stewardship of Keir Starmer is less of a concern than it was under Jeremy Corbyn

Ashley Wilsdon, Head of London Buying, Middleton Advisors.

“The general consensus amongst our clients is that a Labour government is perhaps an inevitability at this stage…and with it a Mansion Tax of sorts is widely expected.

A Labour Government under the stewardship of Keir Starmer is less of a concern than it was under Jeremy Corbyn and the London property market seems to have already factored in this likelihood, which is reflected in lower levels of transactions compared to the same period last year.

The PCL London market will likely revert to type, namely vendors will be reluctant to sell and buyers will be opportunistic in their approach.”

 

Perhaps gives people who are on the fence a reason not to buy

Charlie Wells, Managing Director, Prime Purchase

“One hopes the reality of a Labour government, should we end up with one, will not be as negative for the top end of the property market as some fear.

There is talk of a percentage increase on stamp duty paid by foreign buyers in the UK – one hopes that the impact of that would be softened by the fact that the pound is relatively speaking pretty weak, although it has recovered a little, and UK property is comparatively not as expensive as property in some other countries.

That said, the uncertainty around a Labour government and what it might or might not introduce isn’t helpful; it perhaps gives people who are on the fence a reason not to buy.

One also has to question just how much such a move will actually generate for the economy. What impact will it have on the average working man? When rich people come to the UK and buy houses in London or estates in the country, they employ a lot of staff, as well as tradespeople, buy a lot of furniture etc and spend a lot of money in the economy. If we stop them doing that, is it worth it in order to generate an extra 2 per cent in stamp duty which grabs the headlines?  Or is it just about appeasing the champagne socialists who live in Islington?

What Labour might not realise is that such policies have the potential to impact hard-working people in the UK.  It may turn out not to be a very sensible move at all but quite often it’s not about that – it’s about appeasing the liberal elite.

It’s a similar situation with the plan to impose VAT on school fees – it won’t affect the rich, it will just put pressure on the state system as those parents who are only just able to afford to put their children through private school suddenly can’t do so. And what’s the outcome? More children in the state system and suddenly the local school’s class size goes from 22 to 30. What good is that to anyone?

The reality is that a Labour government probably won’t have as much of an impact as we think but it would put pressure on the ‘wrong’ people and certainly not those it is trying to target in the first place.

It’s certainly a talking point for clients. Are they worried? At the moment it is all an unknown and if they ask us what the impact of a Labour government might be, we can’t answer the question for them – they have to take a punt for themselves”.

 

Many people will see a change as welcome…but there could be more punitive measures around multiple home ownership

Mark Pollack, Co-founding Director, Aston Chase

“What a Labour-led Government would mean for the UK’s prime property market would depend on what legislation comes with a change in government. Fundamentally, Kier Starmer is reasonably moderate and it feels like there is an understanding that it would be an ‘own goal’ to punitively tax properties that could result in some wealthy people choosing to leave London despite them having strong ties to the capital such as children’s schooling and healthcare provision.

However, if there were to be a Labour-led Government, it would be a culture change, and there will be anxiety with any change of government particularly after such a long Conservative Government rule. However, we have had such a volatile time with the current government, so many people will see a change as welcome.

I believe under a Labour Government there could be more punitive measures around multiple home ownership. Some sort of wealth / property tax seems like a possibility and this will affect Buy-To-Let investors and multiple home owners such as landlords the most. However, under Labour Governments, there always tend to be an upturn in regeneration project initiatives and new development zone allocations. For example the regeneration of Nine Elms, Battersea Power Station and Croydon were all kick-started under Labour governments.

Labour Governments, historically, are happy for more private sale homes to be built, especially in London, as long as this comes with ample social housing, leisure and community infrastructure provision. Both the Labour and Liberal parties are currently very critical of the Conservative party that not enough new homes are being built in London and the wider UK, and a focus on more housing provision can only be good for the property industry.

We are not yet seeing any impact at the moment on buyers and sellers. We are potentially still 18 months away from a general election, in 2024 it may become a hot topic but at the moment we feel we have just begun to  get over the effects of the mini budget and escalating interest rates, it would be nice to have a little bit of stability in the market for some time.

Also, especially in Prime Central London in locations such as St John’s Wood, Regent’s Park and Hampstead, the last 15 months have been a significant upturn in American families – both buying homes and renting. This is because of the exchange rate advantage, but also because the American real estate market has been so deeply depressed, so even if we have a change of political party, these overseas buyers and others from the Middle East and Asia are highly unlikely to “sell-up”.

Since the autumn mini budget it is only recently that we feel, perhaps as the weather is improving and spring has sprung, that despite interest rates going up, people have got used to the new terrain. There has been a period of inactivity resulting in pent-up demand but life goes on and people want to get on with things such as buying their new home.

Many of our recent sales are on properties that have been reduced in price – it has taken quite a long time for the market to get used to the new reality. Now that this has happened, and people have reduced prices, we are seeing a bit more of normality.

I am not sure that Labour is as such a terrible prospect for the property market as some view it, seeing as we have had a Conservative Government that has been so set on financial acumen and everything associated with that. So we are currently not as phased by this as we have been with other political issues”.

 

London will undoubtedly remain a desirable city for prime buyers

Toby Downes, London Specialist, Haringtons

“Of course, for many looking to buy or sell prime residential property in London, the prospect of a new Labour government does prompt concern. Higher stamp duty rates aimed at the International buyer combined with further measures being discussed could discourage purchasers and temper their appetite for the Capital. However, London has long been a favourite with overseas buyers whose interest remains strong most recently fuelled by the strength of dollar based currencies.

Regardless of the political agenda, safety, security, culture and a favourable time zone, ensure that London will undoubtedly remain a desirable city for prime buyers. Little surprise therefore that with fewer excellent properties available, impartial advice and buying expertise are today more crucial than ever”.

 

What the London property market needs is more affordable stock, not higher taxes

Camilla Dell, Managing Partner, Black Brick

“A Labour win isn’t going to have a positive impact on the super prime London property market. Labour want to increase tax on overseas buyers which is already at 15%, an extortionate amount. Most overseas buyers aren’t even competing with first time buyers as they are buying well above £1 million. What the London property market needs is more affordable stock, not higher taxes. Higher stamp duty will cause the market to stall meaning fewer transactions, but not necessarily huge price falls.

The last time stamp duty went up the London market fell pretty much in line with the increase. How much the market falls this time all depends on what the extra increase looks like. A 60% tax, such as what the Singapore government have brought in for overseas buyers, would be disastrous and would erode confidence in the market in London. Right now, most overseas buyers are unaware of the changes a Labour government would implement if elected but I imagine that will start to change as we get closer the GE”.

 

Those who really want to have a foothold in one of the pre-eminent cities in the world will still want to be here

Caspar Harvard Walls, Partner, Black Brick

“The changes to taxation on property over the last 10 years and in particular to stamp duty has had many impacts, one of them being that buying in London has to be for the medium to long term.

A change in Government might put off some buyers but Governments potentially change every five years and so those who really want to have a foothold in one of the pre-eminent cities in the world will still want to be here”.

 

Buyers and sellers are understandably craving political stability

Jimmy Waight, Regional Director, John D Wood & Co

“After the disastrous mini-Budget announcement in autumn 2022 which sent mortgage rates spiralling, and spread a cloud of uncertainty across the property market, buyers and sellers are understandably craving political stability.

The market has settled, and confidence has begun to return, however, we need our elected Government to take our housing policy with the seriousness it deserves.

There are serious challenges facing the UK’s housing market – from lack of affordable homes, and rising rents, to uncertainty around policy, such as the u-turn on the abolishment of the leasehold system – to name a few. It is abundantly clear that we need a long-term strategy to address these issues, which will create much needed improvement within the industry. Having had 6 housing ministers in the last 15 months, and 16 housing ministers over 13 years, it comes as no surprise that these issues are yet to be resolved.

Regardless of which party is in power and the merry-go-round of housing ministers, the prime London property market remains resilient and an upcoming election is unlikely to deter people who need to move home”.

 

Our current crisis is in development and construction

Ben Ridley, Director, Architecture for London

“A Labour government would result in shifts in housing policy that are likely to affect the prime property market. Labour intend to increase the stamp duty paid by foreign buyers of UK properties, thereby reducing demand from overseas buyers, this will have a cooling effect on value growth in the prime sector. Other proposed policies that may have a similar effect include: allowing only first-time buyers to be able to buy homes in a new development in the initial months of marketing, and limiting overseas buyers to 50% of units in any new development. The benefits of these policies will be meeting local housing needs first and potentially making properties more affordable to local buyers.

I feel that our current crisis is in development and construction. Site transactions and development activity are being paused due to the double-edged sword of high borrowing and construction costs, both arguably due to political decisions in recent history. I think over the next few years we will see an impact from this reduced supply of new homes in the prime sector – this reduction in supply may keep prime values buoyant despite the policies of a potential new government”.

 

If Labour pushes them too far, international investors will choose other cities to the detriment of the economy in London and UK as a whole

Dominic Agace, Chief Executive, Winkworth

“The outlook for prime markets looks more positive than it has for some time, with Brexit behind us and Labour taking a more centrist approach than they have in the past.  However, the housing market is in crisis, with rents rising rapidly recently after a sell-off by landlords in the face of tax changes. A lack of new homes being built is set to exacerbate structural supply and demand issues for the foreseeable future.  With these issues, housing has never been such a political issue. With that comes the dangers of over-intervention having unintended consequences that add to the problem rather than solve it.

In some ways both parties are now trying to occupy the same ground, competing for the votes of the first-time buyer and generation rent with proposed incentives for FTBs and further regulatory reform to support tenants. In many ways, a Conservative or a Labour government will have the same impact as they push through these agendas, as we start the countdown to the next election and the parties seek to win votes – with the housing market at the core of their pitch to the electorate.

The dangers are already here and it now depends whether a Labour government will exacerbate them. Support for first time buyers is a positive step, but without actual action on supply and planning reform, this will be a one hit wonder – with future first time buyers facing an even steeper challenge. The Conservatives have clearly defeated themselves by missing their housing targets. Labour have spotted this opportunity and are pushing their commitment to build new houses and council houses, which one can only hope they deliver if they come to power.

The big concern is the private rental sector where private landlords are starting to not see a future with rising costs of finance and tax changes meaning they pay tax on income they do not receive and their investments are underwater.  The issue is if they do sell off, then rents will rise further and competition will increase.  The answer to this is not rent caps. We have seen in Scotland how this will disincentivise investment in the sector by institutions or private landlords, affecting the availability for people who want to live near their workplaces. This is undermining the appeal of our cities as places to move for career reasons. In the case of London as a global business centre, international workers coming to the capital for work can’t find accommodation.  We need to encourage a healthy private rental sector to ensure that young people can live in cities, and not force them all into larger rental schemes without offering the choice of more central locations. We do need both options and responsible regulation to ensure a fair market place.

The other threat for prime markets is a stated intent to increase tax on overseas investors. We have seen in recent years that tax changes and economic credibility do affect buyer demand in prime markets. London needs to continue to be open and welcoming to overseas investors to continue to thrive. If Labour pushes them too far, international investors will choose other cities to the detriment of the economy in London and UK as a whole”.

 

A Mansion Tax as such still looks difficult, if not impossible to implement in an equitable way

Mark Parkinson, Managing Director, Middleton Advisors

“The short answer is we do not know as they have not published any policies. If a recent article citing a Labour think tank on possible/probable housing policy is correct, it seems to be more focussed on helping first-time and low-income buyers get on the ladder with government backed mortgages etc, rather than clobbering the owners and buyers of prime property. They did suggest further increased SDLT for foreign buyers, but it would be quite difficult to define a ‘foreign’ buyer given the very diverse nature of London as a city.

One question we are asked increasingly is about the threat of a Mansion Tax. This was a recurrent theme in the run up to the 2019 General Election and the thinking remains the same. There may well be increases in Council Tax at the higher end or indeed more Council Tax bands, but a Mansion Tax as such still looks difficult, if not impossible to implement in an equitable way”.

 

A new government could provide further stability

Jonathan Harris, Founder, Harris Associates

“London remains a safe harbour for investors, regardless of the government in power and despite economic concerns, we see reasons for optimism. The UK market exhibits relative resilience in the face of global instability and unpredictability, which is why it has and will continue to draw the appetite of international investors, including Asian capital. We see this demand through our international partnership with Edmund Tie.

As it stands, the local councils that are mostly Labour-led would suggest minimal market changes. On a macro level and looking back at Labour’s previous tenure, their investor-friendly approach and openness to immigrants bode well for business, hospitality, and real estate. With the market already showing signs of strength, a new government could provide further stability”.

 

There is a lot of pain coming for lots of people

Yasmin Ulhaq, Director and Founder, Glenfield Property Management

“As the general election approaches, housing plans have once again taken centre stage. The Conservative Party, in my opinion, has heavily focused on the Renters Reform Bill (RRB) as a key solution. However, I anticipate several challenges in its implementation. The RRB was initially discussed in 2019 but has faced delays due to uncertainty within the party. The legislation aims to abolish the section 21 notice, shift tenancies to periodic terms, and introduce new standards for the rental sector making it challenging for the private sector landlords.

Labour has shown support for rent controls, particularly in major cities. If implemented, this could potentially impact the rental market and, indirectly, the prime property market by affecting rental yields and returns on investment for landlords.  According to Nandy, the next Labour government will never treat renters like second-class citizens. What about Landlords? I believe both parties have totally misjudging the situation. By protecting tenants they are actually causing more hardship for them. This is going to increase rental prices making it harder for tenants to rent and subsequently landlords will leave the sector.  What about having some practical landlord incentives?

The global community of super prime buyers (anyone over the £5mn category) are more diluted now as other cities such as Dubai, Spain and Miami have entered the stage. London properties are set to have the most substantial fall in value during 2023.  Several signs have indicated towards the Labour party increasing the stamp duty paid by foreign buyers of UK property as well as limiting the sale of new build buyers overseas. Starmer wants to retain up to 70% allocation for UK buyers. Starmer is making an exception here by bashing the uber wealthy, especially those who claim non domicile status.

Speaking to some of our clients, their tax advisers are on the fence and are considering diverting their money elsewhere, potentially leaving a gap in the UK’s finances. Many landlords have decided to exit the rental market and invest in other funds. Will the government build the 300,000 homes it’s promised in time before we have another crisis on our hands. There is a lot of pain coming for lots of people”!

 

Targeting of ‘overseas’ buyers as a solution is problematic…and rather short-sighted

Vic Chhabria, Founder and CEO, London Real Estate Office

“The Labour party has already sent clear signs they are keen to limit non-dom buying activity with a second stamp duty surcharge and even sales restrictions on new build developments, which is significant to the prime property market. Of course, there is a need to make homeownership more accessible though this targeting of ‘overseas’ buyers as a solution is problematic and – dare I say it – rather short-sighted. Such a blanket approach to the UK’s entire market, and all people of so-called international status, doesn’t reflect the complexities and nuances within it and it’s hard to say whether such actions will really bring about the change that assists local and younger buyers. It also assumes international buyers are not active residents and contributors to the local communities and economies in which they live, from local businesses, schools, gyms, restaurants, bars and more. If the above would come into force, the Capital could lose out on foreign money that has historically been crucial to the UKs economy. This in turn could be a hit to our current political-economic climate and could result in worse outcomes, with little help to the audience it’s aimed at assisting.”

As it stands there is caution amongst both UK and overseas buyers but not worry. If a Labour Govt looks is imminent, it could potentially catapult London’s property market between now and the election as foreign buyers look to snap up homes in the Capital before any stamp duty surcharges and restrictions come into play”.

Agency lists rare plot of land across the road from Hampstead Golf Course with scope for new super-home.

A rare plot of land on north London’s Winnington Road has been put up for sale with scope for a new mega-mansion.

Mayfair-based agency Black Brick is quoting an asking price of £6.995mn for the 0.38 acre slice of Hampstead Garden Suburb, which currently houses a tennis court and a patch of grass.

 

The vision, however, is for an “elegant” 16,000 sq ft period-style residence with a full suite of leisure facilities.

Plans show four floors of accommodation, with two living rooms, a large kitchen overlooking the garden terrace, a dining room and a study. Six bedrooms would occupy the upper levels, with all the fun stuff down in the basement: a games room, gym, hair salon, massage room, swimming pool and Jacuzzi.

 

 

Consent is already in place for the transformation, said the firm, describing the instruction as “an intriguing prospect”.

Winnington Road, close to Hampstead Heath, is regarded as one of north London’s most prestigious addresses. The plot itself sits right across the road from Hampstead Golf Course.

London buying agents expect most of the action will be happening off-market in the coming weeks.

Buyers in prime London could be in for a frustrating few months ahead, as vendors shy away from listing openly in an uncertain market.

“The spring buying season has begun with more of a whimper than a bang this year,” according to buying agency Black Brick, citing reports from estate agents of lower levels of appraisals, compared to 2022.

At the same time, buyer demand appears to be holding up in the face of volatile economic conditions.

The Mayfair-based firm suggests part of the reason vendors aren’t getting round to listing their homes is the confluence of two major holidays: Easter Sunday falls on April 9th and Ramadan, the Muslim holy month, started on March 23th.

“There is certainly nothing coming up in the £3mn to £9mn flat market in central London at the moment,” said partner Caspar Harvard-Walls.

Increasing numbers of buyers are opting to sell off-market with no online presence, added managing partner Camilla Dell: “At the moment, because the market is a bit uncertain and unsure, sellers don’t necessarily want everyone to know what their asking price is,” she said. “I use the analogy of a game of poker, where you want to keep your cards close to your chest.”

The proportion of off-market deals struck by the firm on behalf of its clients has risen from around 40% to 55% since 2021.

Sloane Square-based buying buying agency Eccord also suggests open-market stock levels will remain “constrained” over the coming weeks, resulting in fierce competition for the most desirable homes.

Appetite for best-in-class, turnkey family houses in central London appears undimmed by events in the wider economy, said the firm, citing drivers including the new academic year or where clients have had a “wealth event” and are ready to move further up the ladder.

The team reports having a number of new buyers lined up to start their search after the Easter break, although some discretionary purchasers are “moving to the sidelines for the time being…waiting to see if prices soften”.

Those seeking to capitalise on the recent turmoil are likely to be disappointed, however. “In our experience of other volatile times and banking sector job losses, high net worth homeowners are more likely to heavily rein in lifestyle-driven discretionary spending, such as personal training and ski holidays, before selling their family home,” said the firm.

Jo Eccles, MD, Eccord: “For the best – and sensibly priced – houses, some are going under offer after the first viewing. We have just agreed the purchase of a family house for a client searching across Fulham, Putney and Chiswick and the speed and strength of competition was particularly evident in these areas.

“Buyers across all price brackets face two key challenges. Firstly, in finding high quality properties in a fragmented and undersupplied market, and secondly, in negotiating a fair and realistic price based on sound comparables.

“The discretionary nature of many prime central London sellers means the gulf between buyer and seller expectations can be difficult to bridge, with sellers holding out for unrealistic prices that often don’t stand up to scrutiny or comparable evidence.”

The firm has a number of new buyers lined up to start their search after the Easter break, although some discretionary purchasers are ‘moving to the sidelines for the time being’

The investor market could be one to watch, however. Eccord reports how increasing numbers of landlords – hit by rising costs and unexciting yields – are seeking sales valuations with a view to exiting the sector…

“A number of our buy to let landlords who acquired their properties after the peak of the market in 2014 are reluctantly considering the prospect of exiting at a loss and are seeking valuations with a view to selling in the next 12 – 24 months.

“Landlords remain very cost conscious, having faced over the winter months rising repair costs, issues with damp and mould – caused by high utility bills and tenants opening their windows less – and greater demands from tenants who are spending more time at home and have higher expectations for the smooth running of their rental property.

“Landlords are also conscious of looming energy efficiency regulation that will require them to achieve an EPC ‘C’ rating by 2025 in order to let their property to new tenants. Many will face significant expenditure on upgrades to bring it up to the required standard, and those owning listed properties face an even greater challenge.

“Net yields remain low and with little prospect of meaningful capital growth over the next three years, landlords are re-evaluating and deciding whether to reduce and consolidate their portfolios when existing tenancy agreements expire.”