May 17th, 2013
Mahatma Ghandi: "There is more to life than increasing its speed"
The London Underground recently ran a poster campaign with this famous quote in order to promote the tube network.
For interesting Tube Facts please click here...
The 150 year old London underground network first opened in 1863 (the Metropolitan Line), and the first Tube map was designed in 1897. The network now serves 270 stations on 11 lines and has 250 miles (402 kilometres) of track. It carries more than one billion passengers per year, and Londoners make around three and a half million journeys on the tube network each day. It is quite simply an iconic and essential part of London life.
Creating London's first ever London Underground-Property Map
Despite the central role that the underground system plays in Londoners everyday lives, no-one had made a comprehensive study of the interplay between tube stations, tube lines, tube locations, property values and price rises/falls. To address this issue Wetherell, in association with Data Loft, have produced the capital’s first ever London-Underground Property Map, which reveals flat prices and rental values for postcode-based catchment areas around each of the London-Underground tube stations.
Click the thumbnail below to see the full map.
What we have found from our new property tube map
The new Wetherell London-Underground Property Map is fascinating revealing for the first time ever, London’s most expensive tube stations and underground lines, as ranked by the value of residential properties around them. It also shows Londoners the dramatic property price and rental rises and falls as tube travellers pass between stations, with massive price changes often occurring in a short distance between just one or two tube stops.
Owning a home next to the “right” tube station can result in a Londoner benefiting from “property gold and riches”, whilst living just a few stops down the line by another can mean owning a home which is just a third of the value of the former. Likewise, if you are renting you could live just a few tube stops away from a friend, yet enjoy a rent that is much lower than theirs.
Our methodology and approach
To create this new tube map, Wetherell commissioned property research consultancy Data Loft to undertake an extensive survey; analysing sales and rental values for two bedroom apartments (as reported by the Land Registry, Lonres & Zoopla) over a 12 month period. The sales/rental data used was for the lowest level of London-Postcode sector immediately surrounding each Underground Station (a circa 0.25 mile radius). The research focused on the 63 underground stations within Prime Central London, the Underground’s Zone 1 Fare Area covering Earls Court to Aldgate and Kings Cross down to Elephant & Castle. The results were tabulated, ranked and artworked onto a London-Underground Transport Map.
The Findings
London's top-10 most expensive tube stations
Ranked by property values, Knightsbridge is London’s most expensive tube station (2 bed flat ave price £2.67m; £1,252 p.w. rent). Others in the top-10 most expensive tube station list include Hyde Park Corner by Belgravia (2 bed flat ave price £1.71m; £936 p.w. rent), Sloane Square in Chelsea (2 bed ave price £1.44m; £820 p.w. rent), Green Park in Mayfair (2 bed ave price £1.27m; £1,016 p.w. rent), High Street Kensington (2 bed ave price £1.19m; £822 p.w. rent) and Regent’s Park (2 bed ave price £1.18m; £714 p.w. rent).
The most expensive & prestigious tube line
Within Zone 1, the Piccadilly line is London’s most expensive and prestigious tube line, as ranked by the value of property values at each of the stations along the line. This is followed by the Circle, District and Central lines. The least valuable tube line in Zone 1 is the Northern Line.
Click the thumbnail below to see the full graph.
Jumps in property values
Other fascinating findings revealed by the new Wetherell London-Underground Property Map are the huge jumps in property values that occur between the relatively short distance of just a few stations. Travel just five stops from Elephant and Castle to Piccadilly Circus and prices rise from just £361,300 to £1.03 million, an increase of 186%. Likewise, travel just three stops from Southwark to Green Park and prices rise from £511,800 to £1,275 million, an increase of 150%.
Leave the West End & prices fall of a cliff
Another interesting finding from the new Wetherell London-Underground Property Map are the significant “price cliffs” that arise across the tube network, The cliffs are large falls in property values that can occur virtually between one tube station and another. The most striking of these is the property “price cliff” formed by the Northern Line. Within Zone 1, the tube stations to the West of the Northern Line predominantly have values of over £1 million. However, to the East of the Northern Line (from Warren Street to Embankment), tube station values drop dramatically, to values of circa £400,000 to £500,000. Between Travel Zones 1 and 2 property values drop again.
Click the thumbnail below to see the full map.
The West End is the place to be
The Wetherell London-Underground Property Map shows that East London still has a long way to go before it can ever rival the West End and West London as offering the most sought after places in which to live. Even in and around the City of London residential values remain as low as £396,455 (Mansion House), indicting that City workers still prefer to live in West London or the West End, and commute into work.
Locations with the highest volume of property sales
Another interesting finding is the tube stations which have the highest volumes of property sales over the last 12 months. Sloane Square in Chelsea comes top. However other tube station catchment areas enjoying high volumes of sales include Knightsbridge, Notting Hill Gate, Bond Street, Lancaster Gate and High Street Kensington. Significantly, areas undergoing regeneration and new development have also enjoyed high volumes of sales over the last 12 months including Kings Cross station, Victoria station, Bayswater and Marylebone.
Knightsbridge & Mayfair are London's best rental locations
For interested landlords, Knightsbridge and Mayfair are the locations with the highest rental values in London, with Knightsbridge at £1,252 p.w. and Green Park (Mayfair) at £1,016 p.w. and are also the only locations in central London where rental values can consistently command values of over £1,000 p.w. Across the rest of the Prime Central London, rental values at the various tube stations range from circa £550 p.w. to £950 p.w. Again, East of the Northern line there is a “price cliff” with rental values dropping to circa £100 p.w. to £200 p.w. lower than tube stations West of the Nothern line.
Conclusions
Our new Wetherell tube map gives property professionals and Londoners an easy way to view dramatic property price and rental rises and falls between tube stations. Its staggering to see that just a few stops along same the tube line can mean rises and falls in property values worth hundreds of thousands and even millions of pounds. This exciting new map shows the value of property in London’s West End and West London.
It also gives Londoners the ability to explore whether they are living close to a “good value” tube station or “poor return” tube station. Property marketing people can use clever imagery, glossy brochures and smart marketing suites to help “talk up” homes in secondary underperfoming locations. However, one thing they cannot do is change the name of their local tube station. So the tube-linked data we have produced provides an easy and sound way for Londoners to benchmark property values in markets where they are interested in buying or renting property.
May 10th, 2013
MAYFAIR: CLUB: COMMUNITY: COCKTAIL
Why is Mayfair so successful? Is it a club for the international rich or is it a close community dating back to the 18th century?
The answer is both BUT also much more - a cocktail of commerce, culture, leisure and retail that makes 21st century Mayfair as unique in the world today as it was politically and socially strong throughout the 19th century.
In this month’s Mayfair report we highlight:
• LAUNCH OF £100M GROSVENOR RENTAL DEVELOPMENT IN DUKE STREET
• DATA ON THE MAYFAIR COMMUNITY
• RETURN OF THE MAYFAIR MANSION
• GRADE II* LISTED MANSION FOR REFURBISHMENT
• IMPOSSING STONE FRONTED BUILDING WITH 5 FLATS
• UPDATE ON NEW MAYFAIR RESIDENTIAL DEVELOPMENTS
• MAYFAIR – A HETEROGENEOUS COCKTAIL
• COCKTAIL COMPETITION!
MAYFAIR’S NEW RESIDENTIAL CLUB
Today Wetherell launch Grosvenor's new £100m development in Duke Street comprising 16 one, two and three bedroom luxury apartments offered for rental with a selection furnished but mainly unfurnished homes - most having outside space.
The Duke Street Apartments, just off Grosvenor Square is set to become the new rental "club" in Mayfair offering a Concierge service plus the 24/7 Grosvenor Service Desk.
The 5 year restoration of this Grade II listed Queen Anne style building is part of Grosvenor's plan for the northern part of their Mayfair estate. In June the newly renovated Brown Hart Gardens will open and the construction of the new Beaumont boutique hotel is underway to coincide with the public realm improvements.
Rental prices start at £1,100 p.w for a furnished one bedroom contemporary flat with terrace up to £4,350 p.w. for a classic unfurnished apartment with three bedrooms, two reception rooms and an enormous terrace.
COMMUNITY
Mayfair has 350 years of community in 285 acres accommodating 4,363 addresses. It might surprise you to know that 73% of its 5,200 permanent residents have no other residential address apart from Mayfair.
On the Grosvenor's 100 acre estate there are 1,910 households with 3,476 residents of which 23% live in social rented accommodation.
Compare this to the census of 1790 when a population of 1,526 residents had 129 persons of title, 35 M.P.s and 112 professionals. This aristocratic and professional class of 20% of the population were catered to by trade that amounted to nearly 60% of the remaining tenants on the estate.
Fast forward to a recent survey by Grosvenor and Experian for the W1K postal code area (encompassing the estate) shows that those of "affluent wealth" now amount to nearly 70% of the population.
Today's Mayfair residents are attracted to the facilities that have also made their "home" in Mayfair and all boast the same credentials of being No.1.
Mayfair is home to 80,000 workers and has 3,800 5 star hotel rooms. It has the most expensive office rents in the world housing hedge funds, financials, advertising and communications industries. Bond Street is now the most expensive district for luxury retailers and jewellers with Regent Street re-invented with Apple and Burberry.
The leisure industry of 5 star hotels and 3 star Michelin restaurants plus the culture of 11 theatres and 10 museums within walking distance combined with 5 tranquil open spaces makes Mayfair unique.
REVIVAL OF THE MAYFAIR MANSION CLUB
It is therefore not surprising to see history repeating itself with the return of the Mayfair Mansion as former office buildings return back to residential use. Wetherell have sold over 100 offices buildings back into former residential use adding 300 new homes to the Mayfair area.
NEW DEVELOPMENTS CLUB
In addition to the return of the Mayfair mansion we are also seeing the return to the area of large residential developments with an increasing ratio of residential rather than commercial office use.
20 Grosvenor Square recently exchanged at over £250M for 140,000 sq.ft. of luxury units.
British Land recently resubmitted planning expanding the residential content from 63,000 sq.ft. to 94,000 sq.ft. for their Piccadilly development overlooking Green Park.
The Ruben Brothers recently obtained planning permission for their conversion of the old “In and Out” club to a single house as well as flats in the adjoining building.
There are currently over 400 new residential units either at discussion stage or in the pipeline which will increase the residential addresses by nearly 10% - A biggest step change for nearly a century.
A HETEROGENEOUS MAYFAIR CLUB
None of this would be possible without the world class offerings of retail, offices, leisure and culture facilities that all have their home in Mayfair. We are living in a heterogeneous era.
The definition of “heterogeneous” is “diverse in character or content”.
It is this cocktail of uses and facilities that make Mayfair the success that it is today.
April 11th, 2013
“If a Tory does not believe that private property is one of the main bulwarks of individual freedom, then he had better become a socialist and have done with it.”
The late Margaret Thatcher MP
Source: Daily Telegraph, 30 January 1975
Record Breaking March
The PCL (prime central London) market appreciates these wise words and the present Coalition Government should not look at immovable assets as easy taxation targets.
Overseas investment in prime residential property has been a valuable economic driver although current plans to tax capital gains are hard to argue as an asset class.
The Wetherell share of the Mayfair residential house and flat market in March was record breaking with over £100m of sales with 2/3rd at the prime top end of the market and over 80% to overseas purchasers.
New Acronym for New Tax
For those purchasing property in a company “envelope” the Annual Residential Property Tax (ARPT) has now been renamed “Annual Tax on Enveloped Dwellings” (ATED) and Government estimates that the new tax along with the SDLT rate of 15% and CGT extensions will generate around £70m in 2013/14.
Records are Made to be Broken
One significant sale was a large lateral apartment in Grosvenor Square on at an asking price of £15.95m which had competitive bidding up to £4,400 p.s.f. This will bode well for the recent sale of the former US Naval Headquarters’ building three doors up which recently sold in excess of £250m for a 140,000 sq.ft. luxury development of prime sellable space.
Step Change
At the beginning of 2011 Grosvenor asked me to present to them a paper for the Board on residential values in Mayfair. I predicted that Mayfair was about to undergo a step change in values which were then around £2,500 p.s.f. for Grosvenor Square.
With values now well over £4,000 p.s.f. for comparable property the question now is what further increases will the Mayfair market experience? This will be dependent on exchange rates, encouragement from Government for continued overseas investment and strengthening domestic market as more people buy into Mayfair as London’s No.1 area.
Write the Book
I have been so fascinated by “Step Change” that I have researched Mayfair history over 300 years and have identified 6 previous step changes and will be publishing my research shortly. Book now for your collector’s copy!
80% Market Share
Data based on Q1 2013 sales of residential Mayfair property marketed and sold where Wetherell were instructed showed 80% market share for property over £5m and also for property up to £1m. So whichever way you view the figures; Wetherell is The Mayfair Specialist.
New To Market
Grosvenor Square – South facing over the gardens and use of ballroom - £5m
South Audley Street – Period masterpiece newly framed - £6m
Culross Street – 3 windows across, immaculate freehold townhouse - £12.5m
Balfour Mews – Newly modernised 5 bedroom house - £4,250 p.w.
Hill Street – Bargain. Unfurnished 4 bed apartment - £1,200 p.w.
March 18th, 2013
Company Ownership and ARPT
“There is no such thing as a good tax”
These wise words were spoken by Winston Churchill and I thought it an apt quote as HM Revenue & Customs send out letters to companies owning property, alerting them to possible ARPT charges (annual residential property tax) from April 1st.
Market Update Q1 – Top end Strong
The first three months of this year have seen the same number of Mayfair residential sales as Q1 of 2012 being 35 sales however the total value of the Top 5 sales have increased from £55m in 2012 to £80m this year.
Yet again Wetherell maintained 4 out of 5 sales and achieved a new record rate for Grosvenor Square and also Mount Street where a similar unmodernised apartment went from £3,256 p.s.f.in 2012 to £3,781 p.s.f. in 2013.
Mayfair Mansions – Success Continues
The trend for the reversion of office buildings back to single Mayfair Mansions continues with the sale of a building in Aldford Street (guide £17.5m) in the heart of Mayfair Village and the resale of one of the first office reversion in Mount Street on a price guide of £32m.
London Luxury Quarter – Economic Driver
London and the South East have been one of the success stories of this recession. The West End has been the jewel in the crown; employing 150,000 people in 1,000 businesses and servicing an annual retail spend of £3bn. The forecast retail spend by 2020 is predicted to be £12.5bn.
All this is happening in 75 streets which are home to over two thirds of the world’s top 100 luxury brands and also housing 60% of the world’s top jewellers.
The last piece in the jigsaw is Mayfair residential property which has suffered from a lack of supply with few new developments over the last two decades.
It is therefore extremely encouraging to see that there are over 400 new residential homes either at planning consultation stage or with outline planning permission. This represents an increase of 10% of all residential addresses.
The overseas market represents over 70% of Mayfair sales and has now recovered from the shocks of the spring 2012 Budget. With the exchange rate now under $1.5 to the pound; Mayfair is once again a buying opportunity.
New to Market For Sale
Curzon Street – A spectacular maisonette with own front door (2,142 sq.ft.) and parking @ £4.95m
New to Market To Let
Mount Street – 1st floor with balcony @ £950 p.w.
Albemarle Street – Penthouse with roof terrace @ £1,300 p.w.
Upper Grosvenor St – 2nd floor unfurnished @ £750 p.w.
More Churchill
With the next budget due this Wednesday:
“we contend that for a nation to tax itself into prosperity is like a man standing in a bucket and trying to lift himself up by the handle”
Coalition please note.
End of an era
Mount Street is a quieter place due to the closure of Serafino Restaurant with rumours of a well-established New York restaurateur moving in.
PARW
February 19th, 2013
Who Lives in Mayfair? Wetherell have just published our new market research on Mayfair showing that the area has approximately 4,363 residential addresses with 5,118 indicative number of permanent residents. However there are also 3,800 5 star Mayfair hotel rooms and Mayfair employs 80,000 people.
No-one Knows Mayfair Better than Wetherell
The last national census revealed that 50% of the homes are rented and 91% of homes are flats, with the average rent for flats being £1,191 p.w. and £2,916 p.w. for houses.
Wetherell TV
The Mayfair Guru has filmed his latest report on the phenomena of “Offices back to Residential”. Mayfair Market Report February - Part 2.
SDLT / ARPT
If you recognise these acronyms then you need a professional valuation NOW if your property is worth over £2m and held in the name of a company. Key dates are 6th April and 17th July 2013.
At the bottom of the page I attach our pdf flyer on our teaming up with the Private Client Department of leading international law firm Taylor Wessing to assist our clients in giving clarity to SDLT / ARPT / IHT & CGT ISSUES.
Mayfair Market 2013 Update
There are currently 108 properties currently available in the market with nearly 25% of the market under offer with Wetherell having 28% market share.
Stop Press
Best 3 bed FREEHOLD apartment - Best street in a modern block with porter and parking. £2.5m
Entertaining Mr Selfridge? - Period 1st / 2nd Maisonette with 2 great reception rooms @ £2,950 p.w.
January 2nd, 2013
2012 was an excellent year for residential property in Mayfair and I note below some of the highlights and then make our predictions for the year ahead.
Wetherell are also supporting a new initiative:
Mayfair Antiques & Fine Art Fair
At the London Marriott in Grosvenor Square
10th – 13th January 2013
Highlights of Wetherell 2012 Sales
- Mayfair played catch up in 2012 with other PCL areas.
- 2012 has been a record breaking year for Wetherell and residential Mayfair property.
- 2012 – Wetherell had 90% market share of all sales over £10m amounting to £170m.
Last Deal of the Year 2012 – New Year’s Eve
- Upper Brook Street
- Grade II listed house – offices back to residential
- Sold for Grosvenor
- £6.25m asking (£1,451 p.s.f.)
To paraphrase Churchill – “the further ahead you need to see, then the further back you need to look”.
The sales market in 2012 featured a number of properties that Wetherell had previously sold in other property cycles.
Most Expensive House
- Upper Brook Street
- Grade II listed house with garden, pool and mews house
- Sold on asking price of £30m (£2,728 p.s.f.)
- 2005 £11.625m
- 1999 £5.9m
- 1997 £5.6m
Biggest Increase in Value
- Mount Street
- Offices back to residential and from multiple units to single house
- £20.5m (£1,808 p.s.f.)
- 66% increase in 2 years
- 2003 £4.3m Wetherell sold on behalf of Grosvenor – offices back to residential
Most Expensive Apartment
- Fountain House, Park Lane
- Duplex Penthouse with roof terraces
- Sold on asking price of £19.5m (£4,200 p.s.f.)
- 2009 £7.378m
- 1998 £3.75m
Other Wetherell Highlights of 2012
Best Marketing
- Upper Grosvenor Street
- Grade II listed offices back to house
- Sold above guide of £14m at £18m (1,418 p.s.f.)
- X 140 viewings in 6 weeks
- X 19 best bids
- Aggregate pool of £300m bids
- Beginning of year before Spring Budget
Quickest Deal
- Mount Street
- Immaculate maisonette overlooking gardens
- £12.75m (£2,704 p.s.f.)
- Maisonette over 1st – 4th floor
- Lateral at 92 then sold immaculate for £3,500+ p.s.f.
Best Buy on the Rebound
- South Audley Street
- Immaculate maisonette
- £10m (£2,912 p.s.f.)
- Buyer missed out on previous 2 sales in Mount Street
Record Grosvenor Square Values
- Both sales in unmodernised condition both with views over Square
- Grosvenor Square shell at £3,166 p.s.f.
- Grosvenor Square unmodernised at long lease value of £3,600 p.s.f.
Unmodernised House at £2,000+ p.s.f.
- Shepherd Close, off Grosvenor Square
- Sold £6.525m (£2,139 p.s.f.)
- 3/2010 £4.7m (£1,541 p.s.f.)
- 11/1990 46 years £1,000,000
Double Increase in Value
- Charles Street
- A 1st floor apartment
- Doubled in 6 years
- 8/2012 £3.325m (£2,384 p.s.f.)
PREDICTIONS FOR 2013
- The Mayfair Guru has now officially worked through 3 recessions
- Celebrating over 40 years in business
- Celebrating 30 years of Wetherell
- Celebrating 20 years in Mount Street
Spring Budget 2012 took heat out of the market as top end of market reacted against SDLT measures
Focus is now on the Draft Bill of 11th December 2012 regarding overseas buyers and SDLT
2012
- Volume of £2m+ sales down 40% in PCL for Q3 due to spring 2012 Budget
- 2012 overall values of sales total up and comparable to 2007 total
- 2012 volume of sales is 50% of 2007 reflecting higher value of sales
Mayfair Guru verses Mayfair Visionary
Hamptons predicts £17,000 p.s.f. by 2050!
Guru bows to Visionary!
But Wetherell achieved new records for Mayfair houses and flats for 2012
2013 Mayfair Market will be the same as 2012
- Strong sales at top end of market
- Consistent turnover at lower end of market
- Weakness in corporate company flat market
- The “best and the rest” sales pattern
- 2013 market threats from taxes, exchange rates, volume of sales
- 70% of Mayfair sales to overseas purchasers
December 18th, 2012
Storm Clouds on the Horizon?
“The horizon of many people is a circle with a radius of zero. They call this their point of view.”
So said Albert Einstein and so it can possibly also be said of some recent proposals from central and local government which will impact the residential property market for Mayfair.
Central Government
This Tuesday, 11th December, the government published their draft Finance Bill clarifying the SDLT (stamp duty land tax) hike and the introduction of ARPT (annual residential property tax) for company envelopes owning property.
The draft bill also has vast implications for “non-natural” persons, CGT (capital gains tax) and IHT (inheritance tax).
The British Property Federation seems to have “done their bit” in making the government clarify that developers will not be liable to the 15% SDLT and that any CGT charges will NOT be based on an historical price base.
The newspapers have stirred up a hornets nest on the avoidance of stamp duty by foreigners however our sales data shows that 97% of our £2m+ transactions paid stamp duty.
70% of Mayfair sales in 2012 were to overseas purchasers. Wetherell’s view is that professional advice should now be taken from lawyers, accountants and property advisors as to the way forward although the bill will not be consented until July 2013 – as they say – the devil will be in the detail.
If you are buying in your own name or Trust then it is business as usual at 7% SDLT.
Local Government
Every week now sees a press article on the revival of Mayfair as a prime residential area and extoling its charms.
Westminster Council (WCC) is now challenging the government policy of more conversion of commercial buildings to residential to stimulate economic growth.
The deputy council leader Robert Davis is conducting consultation to be published in the spring of 2013 aimed at curbing the growth of residential to maintain the “equilibrium” between commercial and residential property in Westminster.
It would be a shame if Mayfair’s renewed “gentrification” was curtailed over a Westminster wide policy as buyers seek to buy and restore period buildings back to their original residential use.
The beginning of the commercialisation of residential Mayfair started after WW1 in the 1920’s and 30’s when the empty mansions were either pulled down and replaced by hotels and mansion flats or converted to other commercial uses.
This commercialisation of the area accelerated after WW2 when commerce took over the remaining buildings on “temporary office permits”, some of which expired in the 1970’s and the majority in 1990.
H2SO reported in February this year that 3.1m sq.ft. of commercial to residential has been undertaken in Westminster between 2001 and 2010 with an outstanding 2m sq.ft. of planning consents from office to other uses which have not as yet been implemented.
There is also the opportunity of creating more smaller flats in the area by demolishing or converting tired or ugly 1960 and 1970 office buildings over to residential use.
Mayfair now has world class retail, office, hotel and cultural facilities; an infrastructure that residential buyers find highly attractive.
We look forward to residential re-appearing in locations such as Albemarle Street, Dover Street, Clarges Street and Bolton Street. These are some of Mayfair’s oldest residential addresses.
Christmas
On behalf of the Directors and Staff of Wetherell, I would like to take this opportunity of wishing all of our clients, friends and Mayfair Aficionados a very Merry Christmas and look forward to what will be an eventful New Year.
November 21st, 2012
As there are quite a number of topics this month I highlight the items at the beginning so that you can then drill down to topics of interest.
Move over Mayfair Guru
Guru bows to Visionary who predicts £17,000 p.s.f. by 2050
New Record Sale for Mayfair
£19.5m Park Lane Penthouse sold for £4,200 p.s.f.
90% Market Share of Super Prime £10m+
In 2012 Wetherell have 90% of £175m Mayfair market
Council Threat to Mayfair Offices back to Residential
Fears for SMEs might halt reversions
Super Prime v Prime
Whilst the area of prime continues to grow in size, super prime grows in value
£45m Doer Upper
The ultimate DIY job on two Victorian Mansion
Knowledge is Power
New Vicar appointed to Grosvenor Chapel
DIARY DATE – MOUNT STREET CHRISTMAS LIGHTS
6:15 pm Thursday 22nd November –
Lighting Ceremony hosted by Mayfair Guru and Celebrity VIP. Join us for a glass of Christmas cheer
DIARY DATE – GOVERNMENT PUBLISHES DRAFT ON PROPERTY OWNERSHIP
Tuesday 11th December –
Draft legislation published regarding property ownership and transactions
MOVE IN BY CHRISTMAS?
All these properties have links to our website at end of email.
Adams Row - £3850p/w - 4 Bedrooms – Superb family home – Chimney for Santa
Park Street – £1750p/w – Stylish top maisonette – Parking for Sleigh
Adams Row - £650p/w – Pied-a-terre opposite The Connaught – Christmas lunch?
Upper Grosvenor Street - £1.5m – 2nd floor 2 bed flat – 657 sq.ft.
Hay Hill - £2.25m – 3rd floor 2 bed flat – 1,098 sq.ft.
Bourdon Street – 2nd floor 2 bed flat – 1,288 sq.ft.
Move over Mayfair Guru
A recent residential market report from an international estate agency predicts that residential values in Mayfair will be £17,000 per square foot (£psf) by the year 2050.
Celebrating 30 years of Wetherell, I have examples of 10 fold increases in values and more since 1982 but with the benefit of hindsight I realise that unknown events can change even the most cautious of predictions.
But who am I to spoil the party? Who needs a Mayfair Guru when you have a £17K psf Visionary!
New Record Sale for Mayfair
Wetherell recently sold the 9th & 10th floor 5 bedroom duplex penthouse at Fountain House (asking £19.5m) on Park Lane with 700 sq.ft. of terracing overlooking Hyde Park and parking for 2 cars.
We first sold it in 1996 as a new development on top of a 1930’s apartment building for £3.75m. We again sold it in 2009 for £7.375m. The doubling in price in 13 years and a further doubling in 3 years shows the massive growth in the value for Mayfair prime residential as it catches up with other prime areas.
Investors and landlords in Mayfair have benefited enormously over the last few years with the “Step Change” in Mayfair values.
In comparison Kensington & Chelsea prime prices increased by over 250% between 1996 and 2009 but only a further 35% over the last 3 years.
The other gold standard for comparison – i.e. gold- increased by 214% (96-09) but recently by only 55% (09-12). The Retail Price Index (RPI) as an inflation indicator saw 41.2% (96-09) and 12% (09-12).
With £ per square foot sales in One Hyde Park reaching £7,000 psf our sale at £4,200 psf indicates that Mayfair has more growth under its bonnet and the upward “step change” continues in value.
90% Market Share of Super Prime £10m+
Recent analysis of Mayfair residential sales over £10m in 2012 shows total sales of £175m and Wetherell market share being £90% of the transactions. If you add the private sale of Prince Jefri’s (Sultan of Brunei’s brother) mansion at £81m; the prime Mayfair market totals a quarter of a billion pounds so far this year.
Council Threat to Mayfair Offices back to Residential
A third of our prime deals have been office buildings reverting back into their original residential use. This is a trend that has now reached a tipping point where each sale exponentially increases the feel good factor of Mayfair as a prime residential area.
With over 100 buildings sold by Wetherell over the last 20 years reverting back to residential use and with over 150 new homes in the planning pipeline; Mayfair is on a roll.
It is therefore unfortunate that Westminster City Council are now considering a clampdown on the granting of planning permissions back to residential to preserve the availability of inferior office space for Small & Medium Enterprises (SMEs).
The difference in capital values of average £2,00 psf for offices and £3,000 psf for residential means that WCC’s consultation will be watched with keen interest by both landlords and tenants.
Super Prime v Prime
Prime central London (PCL) is increasing in size and definition every year. When I started in the business in the early 1970s prime meant Mayfair, nowadays new developments are sold in the Far East as prime as long as they are on the Central Line of the Underground.
The golden W and SW postcodes are now “Super Prime” and increasingly “super price”.
£45m Doer Upper
Wetherell have just released two former office buildings in Park Street reverting back to their original use as two adjoining houses in the prime “Mayfair Village” location on the corner of Aldford Street.
Over the launch weekend we had over 300 website viewings with over 100 brochures downloaded. Refurbishment costs could set you back a further £10m but will result in two of Mayfair’s finest mansions featuring a Dining Room to seat 24 plus a Cigar Room opening onto a private terrace.
Knowledge is Power
“Knowledge is power but love is to serve” said The Bishop of London, The Rt Rev’d and Rt Hon. Richard Chatres KCVO DD FSA, from the pulpit at Grosvenor Chapel for the sung Eucharist for the Licensing of the new Priest-in-Charge, The Rev’d Dr Richard Fermer on Tuesday 6th 2012.
I have been serving the Mayfair community for 30 years. With longevity comes knowledge and if that is power it also comes with responsibility for the privileges that knowledge empowers.
Mayfair is embarking on its most important journey since the 1920’s. With the passage of time we will look back on the “20 tens” as the most exciting decade for a century.
DIARY DATE – MOUNT STREET CHRISTMAS LIGHTS
As Chairman of the Mount Street Association we are organising our lighting up on Thursday 22nd November with shops open between 5.30 – 8 pm.
I will be introducing our “secret” Mount Street Ambassadress at 6:15 pm to turn on the lights.
She has a great head for numbers but pipped Pippa and won “Rear of the Year”. She will be Mount Street’s Christmas Carol. I will say no more!
DIARY DATE – GOVERNMENT PUBLISHES DRAFT ON PROPERTY OWNERSHIP
On December 11th - following the March Budget and consultation the Government publishes draft legislation impacting UK residential property transactions and ownership.
Wetherell will report on this as soon as we are up to speed and can give you considered advice.
October 16th, 2012
GURU PRESENTS
Last month I presented to clients of Boodle Hatfield (solicitors) on the strength of the property market in prime central London (PCL) after the changes to stamp duty in the March Budget and the threat of annual charges to "non-natural" persons.
“PCL” to “SP”
When I started work in the 1970's prime central London was Mayfair. Now PCL makes up a far larger share of the golden London post codes, so much so that "super prime" is the new PCL and the most up and coming "SP" is once again Mayfair.
SPEED & VALUE
Recent sales - both within weeks of launch - of an immaculate £7.2 5 m / 3 bedroom apartment in Mount Street at £3,500 p.s.f. plus the sale of a maisonette overlooking Mount Street Gardens (£13.5m) which had its own front door; indicates the demand over supply that exists today for Mayfair.
UNINTENDED CONSEQUENCES
Government should be aware however that the heat of the market has cooled from overseas buyers who are becoming increasingly concerned as to their attitude to foreign investors.
This can be significant to Mayfair - Wetherell data of sales over the last 12 months shows buyers in Mayfair as
• 30% British
• 25% Indian
• 13% Middle East
• 13% European
• 13% Russian
• 6% Far East
Although the "elephant in the room" is that we had no American buyers it should not be forgotten that 70% of buyers emanate from overseas.
£150M FOR SALE
Currently at the printers is Wetherell’s latest "Finest Properties" featuring £150m worth of Mayfair’s best houses and apartments.
Over the last 7 years we have sold £1bn worth of Mayfair property and see the next 10 years as the most exciting Mayfair decade for a century.
With an average Wetherell Mayfair sale since 2005 at £8m and with a market share of 30% of house sales; Wetherell see the reversion of offices back to town houses and mansions as a continued bonus to the area.
150 NEW HOMES
There has been no new residential development in Mayfair for over 8 years and it is exciting that there are now plans either consented or on the drawing board for over 150 new residential flats in the area.
PREDICTION
"In the business world, the rear-view mirror is always clearer than the windshield" said Warren Buffett
Government - both local and national. Economies - both national and international and world-wide events could all affect the current strength of PCL.
The current strong market is pushing Mayfair up the charts of the "SP" postcodes.
A harder market would increase the appreciation of the values of Mayfair and its infrastructure of history, culture, entertainment, hospitality and community.
DIARY DATE
The Mount Street Christmas Lights Switching On Ceremony is Thursday 22nd November 2012 @ 6:15 pm
September 12th, 2012
Record Breaking Values Lift August Gloom on Low Turnover of Sales
Government Health Warning
New Mayfair Instructions
Q: What do Mayfair Property Values and Tattoos share in common?
A: HINDSIGHT
Whilst on holiday I met a middle aged man lamenting on the folly of his youth as the starkness of his decorations faded against his increasing tan.
Likewise in preparing this report on “Record Breaking August”, I marvelled on the benefits of hindsight with a 66% increase in a Mount Street property value over a 2 year period and the sale of a 1st floor two bedroom Charles Street apartment that has gone from £845,000 (£572 p.s.f.) to £3.325M (£2,400 p.s.f.) since 2003.
STEP CHANGE
Two years ago I predicted that Mayfair was going to experience a “Step Change” in residential values. Vision might come from Hindsight, Insight and Foresight but the Mount Street sale also highlights the phenomena of former offices reverting back to their original residential use as a house.
FULL REPORT IN PDF ATTACHMENT
The old economic model used to create greater value by splitting a building into multiple units no longer applies for Mayfair and other prime central London locations.
2003 TO 2012 VALUES
The second sale was a 1st floor high ceilinged apartment close to Mark’s Club in Charles Street, sold three times by Wetherell in the last 9 years as a “freehold” apartment. After refurbishment it doubled in value between 2003 and 2006 and the recent sale shows a further doubling of price.
Autumn Mayfair Market?
The triumphs of the Olympics dulled the August market with only 5 residential sales in Mayfair. However with website viewings now up by 50%, the diary is once again full with appointments and there is a healthy pipeline of property under offer; these are strong indications of an active market up to the end of the year as long as government does not intervene!
Government Warning for Prime Property
The 2012 Budget announced the stamp duty land tax (SDLT) changes to single dwellings over £2m in value and a consultation paper was published on 31 May fleshing out the details of 15% SDLT / Annual property charges and new CGT charges.
The consultation period ended on 23 August and we now await publication of draft legislation before the end of the year.
One of the economic drivers of the UK is London and the South East and the prime central London property market has continued in strength whilst the rest of the market has languished.
We believe that the “Mansion Tax” is profoundly misconceived and the whole budget proposals were political not economic and hastily cobbled together. They have sent out the wrong message to investors.
New Instructions Sales Department
Brooks Mews @ £1.695m – A 2 bedroom flat with Patio Garden
Upper Brook Street @ £2.25m – A short lease 3 bedroom flat by Le Gavroche
Farm Street @ £4.25m – A 3 bedroom duplex with roof terrace and car parking
Upper Brook Street @ £6.25m – Offices back to residential house off Grosvenor Square
Chesterfield Hill @ £9.95m – Freehold house with conservatory
South Audley Street @ £10m – An amazing apartment of 3,434 sq.ft.
Mount Street @ £13.5m – Largest residence overlooking the gardens
Aldford Street @ £17.5m – Offices back to Mayfair Mansion
New Instructions Lettings Department
Farm Street @ £850 p.w. – Hidden gem
Reeves Mews @ £900 p.w. – Mayfair Village
Mount Street @ £1,600 p.w. – Lovely pied a terre
Culross Street @ £3,850 p.w. – Impressive townhouse
Last Hindsight quote:
The notorious 1920’s Mayfair resident Tallulah Bankhead once remarked;
“If I had to live my life again I'd make all the same mistakes--only sooner”
Kind regards
Peter Wetherell
