London house prices: Prime Central London property is experiencing a dead-cat bounce, after demand for high-end homes suddenly rose
London's high-end property market may be experiencing a dead-cat bounce – after demand for homes in London's most exclusive areas spiked as investors attempt to squeeze in transactions before stamp duty is hiked in April.
Research by online estate agent Emoov, seen exclusively by City PM, showed demand for homes worth £1m or more has jumped by 16 per cent since the beginning of the year.
That puts Emoov's Prime Central London Property Index at 13 per cent overall, up from minus three per cent – and at its highest level since June last year.
The biggest risers were Maida Vale, where demand has increased 281 per cent – while Primrose HIll is up 169 per cent.
But it's not all rosy in the Prime Central London market: demand in Notting Hill has fallen 42 per cent since the beginning of the year, while Mayfair is down 36 per cent.
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In April, changes implemented by the government will mean those buying a second home will be charged an extra three per cent in stamp duty. That's on top of recent reforms which pushed up levies on homes worth £1m and £2m or more, and penalised foreign buyers.
“It’s clear that the fast approaching increase in stamp duty tax is having an impact on London’s high end market," said Russell Quirk, Emoov's founder.
"The prime central London market in particular has been in decline for quite some time now, but this flurry of activity from both buyer and seller has seen demand on the up for the time being."
Figures published by estate agent Chestertons today showed there has been a "virtual stampede" of buy-to-let investors from the capital.
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