End of summer / early autumn update
As summer draws to a close and we step into autumn, it’s a good moment to pause, reflect on recent activity, and share some perspective on where the Prime Central London market is heading: challenges, opportunities, and everything in between!
We hope your summer has been fantastic and you’ve managed to make the most of the amazing weather we experienced. For us, it wasn’t as busy as we might have liked, but we did secure several pied-à-terres for both new and longstanding clients, as well as picking up some truly best-in-class instructions. As ever, our focus remains firmly on quality over quantity when it comes to both properties and clients.
On a personal note, I recently sold my own property after a year on the market. Despite decades in this business, the process was a reminder that we are always learning as the markets evolve. At times, it was highly frustrating - yet another vanilla viewing can test anyone’s patience - but we kept the faith and achieved a sale that allows us to move forward with our lives. Not quite at the price we initially hoped for, but that’s the new norm. Agent or not, the market rarely lies.
So, where does this leave the market as we head into autumn? Traditionally it is a good time to sell. For buyers, now can be an excellent moment to strike with little competition and plenty of choice, the odds are stacked in your favour to find not the cheapest or most reduced home, but the best home for you and your family.
Of course, the spectre of a potential Capital Gains Tax change looms. Labour is reportedly considering removing or limiting the exemption for primary residences above around £1.5 million, with gains taxed at 18% for basic-rate and 24% for higher-rate taxpayers. Coupled with the already high upfront cost of Stamp Duty, this could further dampen turnover in the prime market. Reduced liquidity, more cautious pricing, and softer growth are all likely outcomes - especially at the top end.
For sellers, timing depends on your circumstances: if you’re not in a rush, patience may pay off - but beware of holding out too long. Many who rejected strong offers last year ended up reducing further to achieve a sale this year. If you need to sell, don’t get lost in the “what ifs.” There is rarely a perfect time. Be realistic, act decisively, and you’re far less likely to miss out.
And finally, perspective: yes, the market has some major challenges, but we’ve been here before. There are always glimmers of hope - even silver (or gold!) linings - in Prime Central London.
As we like to say in PCL, “there is always a market”.
Simon Rose