The last quarter of 2005 and the first quarter of 2006 saw frantic selling activity as City money either spent what they were going to receive in bonuses or invested proceeds into the Mayfair market as well as central London and the Home Counties. The second quarter of 2006 has been dominated by more of a consolidation as frustrated buyers outstrip supply as the drought on new instructions continues and sellers achieve ever higher record selling prices. A note of caution however as Wetherell has seen a sharp rise in the “fall through rate” as buyers withdraw from agreed sales due to the fact they feel that they are overpaying.

The last 9 months has seen considerable activity in the Mayfair area. So far a total of 120 properties have been sold with a combined value of £179 million. Only 15% of the sales were houses but they represented over 50% of the total value of flats sold and Wetherell were involved in over 55% of these house transactions.

The volume market however has been property up to £1.5m accounting for 60% of the overall Mayfair market with Wetherell one of three dominant estate agents who between them account for approximately 50% of the market with Wetherell at 22% of the market.

Overall Residential Market

So how does our experience in Mayfair relate to the overall market for residential property? Land Registry figures for England & Wales in the 1st quarter of this year show an 11% increase in prices compared to Q1 2005, however what they also reveal is that the volume of sales is 30% off the same time last year. Volume of sales of property in excess of £2 million have increased by 84% with an average 50% increase in volume for properties worth in excess of £1 million.

So again, what does this mean? The national and local media tend to report the more glamorous sales so it is therefore not surprising that the press currently report a booming market. Just remember that it is based on low supply and high demand and sourced mainly on activity which happened in the first quarter of the year. Vendors should take heed of their estate agents advice as buyers are beginning to baulk at prices currently being quoted.

The Summer Sales Market in Mayfair

So how busy will the summer months be? Wetherell are looking forward to a busy third quarter as we currently have a great selection of property on offer and feel that Mayfair still offers far better value than other surrounding prime residential areas of London. Mayfair can still therefore offer growth in the short term as well in the long term. The weakness of the dollar against sterling has however effectively increased the price to purchasers from the Middle East. Wobbles on the Stock Market have taken the shine off the feel good effect and lack of supply has frustrated buyers through viewing inferior properties at superior asking figures. This could send them into early hibernation for the summer. So we are back to the old clichés of “prime property” and “location, location, location”.

The Summer Rental Market in Mayfair

The rental market has already shown a strengthening over the spring months as companies and individuals rent across all price bands with the top end stronger that we have known for the last 12 months. Wetherell have recently let two apartments in Grosvenor Square (£3,500 / 1,250 p.w.) and two new buildings recently sold to investors for the buy to let market are over 50% let at a top rate of £1,150 p.w. for a three bedroom flat and £950 p.w. for the two bedroom flats. Studios have been achieving £550 p.w. with one bedroom at £775 p.w. and £950 p.w. for a one bedroom penthouse.

For green views over gardens or parks Grosvenor Square and Green Park both offer large lateral flats with porterage, Wetherell have one of each at around £3,000 p.w.

The cheapest entry level into Mayfair is a two bedroom flat off Grosvenor Square at £475 p.w. and a one bedder opposite the Connaught at £500 p.w.

Conclusion

Mayfair has a great deal to offer and Wetherell has the selection of property available for both sales and rentals.

For all enquiries: Sales Department: 020 7529 5566, Rental Department: 020 7529 5588