THE Sales Market

The outlook for Marylebone and Fitzrovia needs to be considered in the context of the wider prime London market.

In the run up to the General Election the prime housing market stalled, following the changes in Stamp Duty and the threat of a mansion tax. Since May, some of the deferred demand from the pre-election period has begun to flow back into the prime London housing market, but the new higher tax rates are being keenly felt by buyers. This has restricted any significant boost to prices and transaction numbers.

In Marylebone and Fitzrovia, the average values are lower than other parts of prime central London so the extra Stamp Duty burden is not felt as strongly. This has led to a slight outperformance in growth so far this year, but the Mortgage Market Review continues to restrict the amount people can borrow and therefore limit house price growth.

Across all prime London, we expect the combination of the higher taxes, increased mortgage regulation and the high levels of available stock built up during the pre-election period will lead to a relatively subdued market over the rest of 2015 and into 2016.

The rental market

Across prime London, we expect the strengthening London economy and continued expansion of sectors such as technology and telecommunications to underpin demand for prime rental property over the medium term.

In Marylebone and Fitzrovia, the number of private renters is already high and the area is very well placed to attract more investment from both traditional and institutional investors. A potential risk to the sector is if a high level of new build stock is brought to the market simultaneously which may lead to rents coming under pressure.