London – a city home to history, culture, and the world’s wealthy…or is it?
While traditionally, London may have been something of a mecca for millionaires and billionaires alike, many reports have confirmed that this demographic is looking elsewhere to buy property. According to the New World Wealth’s annual Millionaire Migration report, a net 500 millionaires moved into London in 2015, a drastic drop compared with 6,000 the previous year. Upon closer examination, it can be seen that there are many reasons why this could have occurred.
For a start, there have been changes to property taxation that have proved problematic. As of April 2015, buyers have found themselves liable for capital gains tax on the sale of any property that is not their only home, regardless of whether they reside in the UK or overseas. This, coupled with the changes to stamp duty rates, is thought to have negatively impacted the number of millionaires wanting to buy in London. According to latest figures from the Barclays UK Prosperity Map, there are 715,000 millionaires living in the UK, yet just 191,000 of these reside in the capital.
So if not in London, where in the world are all of these ultra high net worth buyers heading?
Global hotspots for the world’s wealthy
New York is one city that has captured the interest of London’s wealthy buyers, according to a new Transatlantic Wealth Report released by Beauchamp Estates.
In the report, which contains statistical analysis by Dataloft, it is revealed that the number of London-based high-net-worth investors looking to buy prime residential property in the Big Apple has spiked by 7 per cent over the past 12 months. Another report released by WealthInsight has shown that there are more millionaires living in Tokyo than any other city in the world, closely followed by New York. London ranked third, while Paris and Frankfurt rounded out the top five.
However, while the wealthy may be for the most part abandoning London and indeed the wider UK in droves, there is one resilient submarket that seems to be still standing against the tide. One of the oldest property markets in London, Mayfair has proved to be continually popular with high net worth buyers even in the face of the recent downturn.
The properties here are by no means exempt from discouraging factors like capital gains tax and stamp duty changes, nor are they cheap or easy to come by. So just what exactly is keeping high net worth buyers coming back for more?
Mayfair – home to London’s millionaires
While other markets in London may no longer be of interest to high net worth buyers, Mayfair has experienced a great deal of growth and prosperity.
Mayfair has experienced what many have dubbed the “Golden Decade”, achieving a staggering 90 per cent growth since 2007. A property in Mayfair is not only a desirable home, but it’s now a valuable asset. One local estate agent that specialises in connecting wealthy buyers with the most luxurious and sought-after property is Wetherell, who have resided in Mayfair for 34 years.
The area’s leading estate agent is responsible for 55 per cent of sales values for 2015. Indeed, Chief Executive Peter Wetherell has been coined the ‘Mayfair Guru’ – for good reason. Even in the face of a slower transactional market, they have still provided assistance to buyers enticed by the desirable prime properties that abound in Mayfair. With a slew of exciting developments in the pipeline, Mayfair is set to continue its winning run, providing buyers with even more luxury residential real estate to enjoy right in the heart of PCL.
Article Submitted By Community Writer
