Overseas buyers are hoping to snap up property in London’s upmarket postcodes before the General Election to avoid the risk of the Labour party hiking Stamp Duty, a leading agent has revealed.

Luxury estate agent Beauchamp Estates has seen a 30% rise in overseas clients enquiring about suitable homes in the Capital that they can buy and get fast-tracked before the election.

UNCERTAINTY

Paul Finch (main image), Head of New Homes at Beauchamp Estates tells The Neg: “The UK General Election and especially the uncertainty that this time we could have a change of government from Conservative to Labour has had an impact on both the sales and lettings market across Prime Central London.”

He adds: “The biggest impact is currently with buyers from overseas. Overseas buyers can see that the Labour Government is looking to raise stamp duty by 1% on their purchases so we have seen an upturn in our overseas clients looking at derisking their purchase and are hurrying to buy before the general election.

“The most recent example is a £15 million penthouse deal we have just fast-tracked for an EU buyer who purchased the penthouse and another two bedroom apartment at Oceanic House in London’s Whitehall.”

GRADE II LISTED

The duplex penthouse and the two bedroom apartment at the Grade II listed Oceanic House (main picture) was originally the London HQ of the famous White Star Line of Titanic fame.

The European buyer, who works in the financial sector in the City of London, bought the penthouse as his London pied-a-terre, and also bought the final remaining two bedroom apartment.

The deal was rushed through by Beauchamp Estates in record fast time as the buyer wanted to purchase before the election since due to fears the hated stamp duty tax would increase by 1%.

THROUGH THE ROOF

Finch adds: “The other impact of the General Election has been in our lettings division. Demand for premium short term lettings have gone through the roof at present as many potential buyers are deciding to wait and ‘sit on their hands’ and see what happens with the general election before deciding whether to buy.

“So they are taking short term let’s on properties so that they can sit out the election before deciding whether they want to buy.

“All the main political parties are committed to building more homes in London and overhauling the planning system to make more residential development faster and easier to implement so this cannot be anything but good for the London property market.”