Wetherell are pleased to announce the opening of



Mayfair’s leading property specialist now operates from
two shops in Mount Street. The newly refurbished 104 Mount Street
being solely dedicated to Mayfair Residential Lettings.

SALES +44 (0) 20 7529 5566 sales@wetherell.co.uk VALUATIONS +44 (0) 20 7529 5577 val@wetherell.co.uk 102 MOUNT STREET LONDON - W1K 2TH

RENTALS +44 (0) 20 7529 5588 rentals@wetherell.co.uk DEVELOPMENTS +44 (0) 20 7529 5599 dev@wetherell.co.uk 104 MOUNT STREET LONDON - W1K 2TZ

“It’s a time when there is much in the window but nothing in the room.”

 The Dalai Lama

This quote struck me as an appropriate statement for the current market for prime residential property in central London.

Every day a new magazine is delivered through the door bulging with estate agents selling wonderful homes but when you come to try and buy any of them then you find to your dismay that they are either under offer or sold and that they have nothing available to suit your requirements!

I have waited until the end of January to report on the Mayfair market in order to ascertain the strength of the market for 2007. Historically, January used to be a slow month with estate agents gearing up for the busy spring period. Now however it is the last quarter and the first quarter which seem to be our busiest times.

Peter Wetherell

62% OF WETHERELL
BUYERS ARE LOCAL
Although prime central London is increasingly seen as a safe haven for overseas investors offering security and a beneficial tax regime, it is interesting to note that you don’t need to be an international estate agent to sell local property.

62% of our transactions in 2006 were to buyers already based in the Mayfair area. As we have always maintained vendors need good local independent advice from an agent who knows the market and combines this with an international outlook and a sophisticated marketing flair.
 

SUPPLY INCREASES 25%
Reports of lack of supply are inconsistent for Mayfair which had nearly a 25% increase in units sold and a whopping 63% increase in value amounting to nearly £400M. What the market has seen is a massive increase in demand as City bonuses, foreign purchasers and general activity increased especially in Mayfair which is experiencing rejuvenation as a prime residential area of central London.

WETHERELL OVER 25% OF
MARKET SHARE /
35% OF HOUSES
Wetherell sold over a quarter of property sold in value terms and in the House Department sold over 35% of all houses that were marketed in 2006.

MAYFAIR RENTAL MARKET
At the present time it appears that a property for rent at £2,000 per week has a capital value of around £2,000,000, a gross return of approximately 5%. As capital values increase this “yield” will diminish as investors look for capital growth rather than income. Wetherell sold two blocks of flats in 2006 to investors who paid at the time the highest price in capital value terms but Wetherell then subsequently created new record rental income from them.

With a lack of property coming available on the sales market Wetherell predict an increase in demand for rental properties from buyers waiting for the right property to come available and also from the pessimists waiting for the market to correct itself.

MOST FORECASTS FOR 2006 WERE WRONG!
Most commentators’ forecasts for 2006 were wrong with none predicting the phenomenal rises that took place. At the beginning of 2006 we predicted; “Wetherell enter 2006 with a good supply of flats for sale; however there is a distinct lack of houses which are still much sought after. With the perceived lack of property coming onto the market in Mayfair for 2006, Wetherell predict a continuation of high value / low supply. This, coupled with the high level of unsatisfied demand for property in the Mayfair area will be the catalyst behind a strong, competitive and successful market for the area in 2006."

2007 WETHERELL FORECAST FOR MAYFAIR - £2,000 TO £2,500 P.S.F.
Of the available stock in the market there is currently 50% under offer and there is a shortage of development stock in the pipeline. This will be the year of “second hand” sales where Mayfair vendors will need to be tempted out of their nests by even higher values. In 2006 Wetherell sold new development stock at close to £2,000 per square foot and see this barrier being easily broken in 2007 with prime property looking to £2,500 per square foot which has already been achieved in neighbouring areas of Belgravia and Knightsbridge.