Notting Hill, long known to be the haunt of bankers and pop stars alike, has seen property values drop in the last twelve months. According to a report from Bloomberg.com, the values fell by as much as 3.8 percent as a result in the slowdown of demand for luxury homes at affluent addresses.
Other well-to-do addresses, such as Chelsea and Knightsbridge have seen their property values decline by 1.2 percent while Kensington was down 0.9 percent. One of the factors for the slump in demand, according to Knight Frank LLP, in its latest report, saw the increase in sales tax on the most expensive homes had caused a chilling effect on the market.
According to an email sent by Knight Frank's Head of London Residential Research Tom Bill, "Price growth to the west of Hyde Park has underperformed the prime central London average over the last year. These are typically family-house markets where strong demand from the financial services sector has moderated in recent years."
Bill further said in his email, "A succession of tax changes has contributed towards low-single-digit annual growth. Buyers and sellers are more prepared to sit on the sidelines until later this year, unafraid of missing out on the imminent return of stronger growth."
Despite the low performance of the luxury home market of Notting Hill, plans are being threshed out by Notting Hill Housing after it announced record surplus worth £121.3 million. According to a report from 24dash.com, the said amount would be used to build new homes all across London, not just in Notting Hill.
The future plan of the NGG is to deliver 8,300 homes throughout the Greater London area, where 4,990 would be made available for rented social housing, shared ownership or supported housing.
According to NHH Group Finance Director Paul Phillips, "We are delighted with our latest performance. We will invest the surpluses in more homes for Londoners on low incomes. Achieving such strong results gives our customers, investors and other stakeholders' confidence in our ability to not only withstand changes to our operating environment but also to continue to deliver homes for a range of needs across London."