The weak Pound provides US Dollar buyers firepower in London’s top postcodes – With the UK budget that the government recently released, and its subsequent weakening of the Pound What effect will the economic outlook for the coming months impact how the London housing market? How could this be an incentive in the international market.
In September the former Premier Minister of the United Kingdom, Liz Truss and her team, announced the reduction in stamp duty as well as a number of other tax reduction actions with the intention to boost economic growth.
The “permanent” reduction in stamp duty was devised to aid buyers for housing and is being kept under the current Chancellor of the Exchequer, Jeremy Hunt MP. The cut has seen the band of Nil Rate for stamp duty – the amount that the tax is due to PS250,000 from the previous PS125,000 on the 23rd September of 2022 which is a savings in the amount of PS2,500 to all purchasers.
First-time buyers do not have to pay stamp duty on the first 425,000 (up to PS300,000) and the worth of the property for which they are entitled to the relief has increased to PS625,000 instead of PS500,000. Other changes that affect the residential property industry currently under review include the possibility of a loosening of planning regulations and releases of land in order to accelerate growth within “investment areas.”
In the wake of the mini-budget In the weeks following the mini-budget, in the days following the mini-budget, the Pound to US Dollars exchange rate dipped to below UScopy.10.
If you add the effects of falling property prices as well as the weaker Pound has resulted in huge discounts available to purchasing properties in the UK using Dollar-pegged currencies, including those who purchase the Hong Kong Dollar and currencies across Asia. Middle East and Asia. People who are looking at markets like Belgravia can benefit from an effective discount of 40.3 percent discount when buying in dollars.
As the supply and accessibility of London’s most luxurious new homes declines and the weakening Pound is causing more the interest of foreign investors. It is anticipated that prices within Prime Central London (PCL) increased by 2.7 percent in the year until September, and the amount of buyers who are interested within PCL as well as POL reached 53% higher than the average of five years (excluding the year 2020) at the end of September.
The number of new sales orders was up 22% over the average for the past five years, as well as the amount of accepted offers increased by 79%, highlighting the high demand. As per the figures above, although house prices are expected to decrease in the near future the cumulative forecast for five years shows an increase of 7.5 percent of Prime Central London house prices according to Knight Frank research.
“Given the anticipated increased focus on the accessibility of gardens or green spaces post-pandemic by buyers, especially those living located in urban environments, SW1 is well-positioned to gain. The latest survey of attitudes, that we included in our most recent issue of The Wealth Report, discovered that 62% who are ultra high-net-worth people (UHNWIs) worldwide are taking their proximity to green spaces seriously because of their distinctive views.
Because of a mix of outstanding local amenities, accessibility to green spaces, as well as Chelsea Barracks putting a sustainable life within the access for its inhabitants, London’s appeal to international buyers will increase” says Victoria Garrett, head of residential for Knight Frank Asia-Pacific.
1. The location is a highly sought-after Central London address: Located in Belgravia an affluent historical district of Central London, spanning both the City of Westminster and the Royal Borough of Kensington and Chelsea, Chelsea Barracks is an outstanding development, comprising an exclusive collection of penthouses, apartments and townhouses that are arranged around seven garden squares spread on 12.8 acres.
The most sought-after Central London address, this highly sought-after district is located between Sloane Street and the infamous King’s Road; abundant with luxurious stores, famous boutiques, contemporary furniture shops, and fine art galleries. In Pimlico Road antique shops abound as do Daylesford Farmshop and cafe offer organic food that is sourced from the picturesque Cotswolds.An outstanding selection of most prestigious universities and schools within The United Kingdom are also within close proximity to Chelsea Barracks.
2. An exciting draw for investors worldwide with a 40% discount in Belgravia as compared from July 2014 to September 2022, taking into account the impact of declining property prices and a weaker pound the discounts available get to levels that are shockingly high. In the time frame, home prices have dropped by 11% while the dollar has plunged to new lows, so that investors from abroad are able to enjoy an average discount of 40% on properties located in Belgravia which is where Chelsea Barracks is situated.
With a forecast for price growth from Knight Frank over the next five years in prime central London. Chelsea Barracks is repositioning Belgravia to be one of the best performing zones within central London. With the weakening value of the pound, world-class education, and the competitive nature of cost of transactions, London holds a strong attraction as a desirable location for investors from around the world.
3. Living in green spaces is a way of life according to Knight Frank’s Wealth Report 2021 62% of ultra-high net-worth individuals (UHNWIs) worldwide cited the availability of outdoor space and the proximity of green space as a major factor when choosing the right home. This has increased the attraction to Chelsea Barracks. Chelsea Barracks was awarded LEED Platinum certification in 2021.
It is currently the most sustainable construction in Europe and among the 16 developments worldwide to achieve this level of sustainability. Its Mulberry Square garden space at Chelsea Barracks has been re-imagined as a common kitchen garden that will be a source of vibrant cut flowers, vegetables , and herbs. Certain aspects of the garden for cooking will be overseen by the newly opened restaurant, The Campaner, moving ahead. The garden was conceptualized with the help of landscape architect Neil Porter, with the innovative input of famous Gardener Jo Thompson.
4. Architectural Heritage: Chelsea Barracks is being constructed through Qatari Diar, which was founded in 2005. Qatari Diar specializes in landmark projects that beautifully preserve and improve their surroundings and provide homeowners with modern technology and modern amenities.
A team of Squire & Partners, Dixon Jones as well as landscape architect Kim Wilkie, were selected by Qatari Diar to plan this former Chelsea Barracks site in 2009 after a thorough selection procedure. The team was united in an understanding that the vision to design the Chelsea Barracks should enhance value in all forms – aesthetic, cultural, social and economic. It should also improve the quality of life for local businesses, residents as well as the larger community.
5. Apartments that have high-end finishes: The style and quality of finishes in the homes have been carefully thought through and carefully executed. The kitchens provide spacious and functional areas and the work surfaces are carved out of Bianca Eclipse natural stone finished by Italian stone artisans, the bronzed ironwork railings that surround the windows and balconies are custom-designed to be that is inspired by the botanical designs that were created by William Morris, and the exquisite hardwood floors and fitted bespoke cabinetry are made with the finest grade of FSC accredited European Oak.
Chelsea Barracks provides elegant living featuring modern conveniences and high-end finishes, including underfloor heating as well as comfort cooling. Creston system, Lutron Lighting, Wolfe and Sub Zero appliances, Arabesca marble-paneled bathrooms. Bianca Eclipse stone kitchen worktops and European Oak woodwork.
6. World-Class Leisure Suite The Garrison Club with its carefully planned lifestyle amenities, is exclusively for the members who live at Chelsea Barracks. It offers all the benefits associated with private clubs such as the latest spa and gym with a private cinema, games room, residents’ lounge, as well as a business suite that includes two boardrooms; the residences located at Chelsea Barracks have been built with the future in mind.
The masterplan follows the principles of Georgian lifestyle for modern family living, with areas and spaces to spend time together , and other spaces to make your personal, regardless of age you are, providing wellness for your body, mind and the spirit.