Labour to burst luxury London property bubble just as 8,000 swanky pads go on sale

16/04/2015
High-end sales in central London will drop by a third if Ed Miliband's party win the election, paralysing the market
Rich property owners in the most exclusive parts of central London will struggle to sell their homes if Labour wins the general election in May, new research has revealed.

The number of luxury homes sold in central London could fall by as much as 27pc if Labour comes to power and introduces a mansion tax on homes worth more than £2m.
This could be bad timing for both developers and vendors as a £12m pipeline of plush pads is expected to arrive on the market by the end of the year.
Activity levels and the value of pricey property in the exclusive boroughs of Belgravia, Knightsbridge, Mayfair, Kensington and Chelsea have already been suppressed by political uncertainty ahead of voting on May 7.
Further Labour pledges, such as the promise to scrap tax relief status for "non-doms", have also shaken the high-end market, fuelling fears that the luxury London property bubble could soon burst.
New analysis from Lonres and the estate agent Russell Simpson has shown that the number of high-end sales will drop 27pc if Labour is elected.
However, if the Conservatives win then transaction volumes jump 20pc. The heightened demand will then boost house prices.

The research analysed the six-month period before and after all general elections since 1992, when John Major retained a Conservative government. The number of £2m homes that sold in the following half year rose 19pc.
After Tony Blair's win in 1997 and 2001 sales fell 23pc and 27pc respectively.

Will the luxury homes market in London go down the toilet if Labour get into power?
These data follow a report from upmarket estate agent Douglas & Gordon that revealed the sale of homes worth more than £2m has fallen 80pc in the last year.
Additional statistics from Lonres also showed that price per square foot in properties over the mansion tax threshold had fallen 38pc in the first quarter of the year compared with 12 months ago.
On top of the pre-election jitters and a post-election fall in sales, should Labour win, nearly 8,000 new, luxury apartments are expected to be completed and go on sale this year in the heart of London - a pipeline worth £12m.
Figures from Pastor Real Estate revealed that the housing stock in the luxury core of the capital has increased by 8.6pc since 2009, totalling 5,200 new residences. This is part of a £4.5bn flow of residential property in the area planned for the forseeable future.
Speculation has started that London could suffer from the "Miliband effect", just as Paris did after Francois Hollande became president of France and introduced punitive property taxes, triggering an exodus of wealthy homeowners.
Property bosses based in London have joined forces to lobby against a Labour win and the mansion tax.
"Currently, concern over the mansion tax is stalling the market in prime central London. People who don't need to either buy or sell are steering well clear of the housing market until the results of the election," said Peter Wetherell, chief executive of Wetherell estate agent.
"If the mansion tax isn't applied, the market will breathe a huge sigh of relief and continue. If it is applied it could have a very severe impact indeed."

Fonte:http://www.telegraph.co.uk/finance/property/11539983/Labour-to-burst-luxury-London-property-bubble-just-as-8000-swanky-pads-go-on-sale.html

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