The years since the financial crisis have definitely been interesting ones for the borough of Westminster. Property prices in Westminster have seen quite a rally since the days of the financial crisis. Westminster in fact has seen house prices go up by 95% since the financial crisis and has seen a boom market for many years as investors, overseas and local rushed to get a piece of one of London’s favorite boroughs.
However, much like most of central London and its neighboring borough of Kensington & Chelsea, Westminster house prices and number of sales have slowed somewhat. Prices in the borough are down some (4%) over the course of 2015 which is a reflection of a number of factors which include:
- A worry from investors over the uncertainty hanging around property investing in the UK at the moment. The advent of the Annual Tax on Enveloped Dwellings (ATED) has put off some overseas investors, and the overhang from the vote on whether to remain in the EU has dampened investment appetite, but also
- A slow down in China which has led to a recent risk awareness of Chinese investors as we have seen some of these investors slowly sell their holdings over the last year;
- Which led to a collapse in oil prices across the Globe which in turn has affected the appetite of traditional oil investors emanating from the Middle East and Russia;
- Also sanctions in Russia have further put a damper on demand from what has traditionally been one of the most prominent buyer group’s;
A number of the changes leading to a slow down in property prices seem temporary but one still wonders when oil prices and demand from China will recover and when they do, will they invests their riches in Westminster as they repeatedly done so in the past?