Trend Spotter

Market Update 3rd March 2011

The last few weeks have seen precedent prices being set in some of the best properties in the area and to some extent some buyers have rushed to Exchange and Complete before the end of the financial year and beat the increase in the top band of Stamp Duty Land Tax from 4% to 5%.

It does not feel like a market that is overheating and the gains in price are modest and sustainable and encouraged by the common problem of a shortage of good housing stock.

There have been an ever increasing number of enquiries coming from overseas buyers and this week. We even saw a small influx of buyer enquiries from Bahrain – politically topical!

As spring approaches Notting Hill and the surrounding area is starting to look its seasonal best again. The financial sector is again attracted by the quick transport links to The City and in some cases we are seeing competing bids from some of these buyers as bonus monies start to flow into the market.

The outlook is sunny with the odd potential cloud in the shape of possible interest rate rises. Inevitably they are going to have to go up some time soon. My against the grain bet is that this will not happen in April. In any case it is unlikely that small rises in interest rates are going to have a marked effect on property prices in this area in the short term.