As widely reported, the number of high-end properties purchased in prime central London has fallen dramatically over the last year, with factors other than the Referendum playing their part, such as a sharp hike in stamp duty, new obligations on non-dom foreign buyers, de-enveloping and the recently proposed inquiry into foreign home ownership by London Mayor, Sadiq Khan.
The Real Estate Waiting Game
This change in demand is causing uncertainty and has led our clients to be sceptical about further property purchases. They are playing the real estate waiting game; wait for the boom before selling or wait for a drop in price before buying.
Our clients are holding onto their real estate investments and really enjoying London. We tend to be involved in our clients’ lives; in our role as Home and Lifestyle Managers clients rely on us to plan family itineraries, weekend activities and preparing homes for arrival.
Investing in luxury goods and renovation
We are seeing an increase in the frequency of visits to second homes in the UK by overseas owners and more bookings including restaurants, theatres, red carpet and exclusive VIP events. Clients may be cautious with real estate investment, but they are making the most of the preferential low exchange rate to buy luxury goods.
One impact of the trend of clients enjoying their homes has been an increase in the number who are considering renovation projects and taking advantage of possible VAT benefits where a property has been vacant for more than 2 years.
Trends in Lifestyle and Home Management
Although there has been a decline in the number of instructions for managing newly purchased second homes, we’ve seen an upturn in appointments from home owners who have made the decision to hold onto their UK properties and who need someone they can trust to look after the keys and other matters in their absence.
We receive instructions from homeowners who have an existing concierge service with their property, but who need a more comprehensive housekeeping service.
Many of our clients are High Net Worth Individuals with families who may be relocating from Asia and the Middle East and who need help with identifying schools, recruitment of household staff, gym membership, GP registration and organisation of weekend family activities. They need the transition from one location to another to be as smooth as possible for their families.
Despite some fluctuations London still remains a desirable location for the global elite and our experience is that property owners are enjoying the Capital.
Knightsbridge Property & Lifestyle Management provides a descreet and trusted luxury lifestyle Concierge service and a permanent home management solution for second homes and local residences in central London. The experience team of specialists work with individuals to provide bespoke solutions.