It was not long ago that the luxury end of the world’s property market was under severe pressure. During the global financial crisis, even the Mayfair area of London – the capitals hedge fund centre – underwent major changes. In 2009, the number of estate agents declined dramatically and those that managed to stay open reported major declines in properties numbers sold. Property repossessions included that of real estate tycoon Cevdet Caner who was forced to give up his 11,250 square foot, seven bedroom house which he had bought for £16million in 2007.
Much has changes since then. The European sovereign debt crisis has ensured that stock markets haven’t bounced back in linear fashion, London’s luxury property market seemingly has. According to estate agents Knight Frank, home prices in London’s most expensive areas have gained 49% since the March 2009 low point and are now 14% above the previous peak in 2008.
Mayfair property prices making a comeback
Further down the food chain and the news is also positive. According to the Council of Mortgage Lenders the number of repossessions across the UK has fallen to the lowest level in 18 months. The figures show that in the second quarter of this year there were 8500 repossessions, 9600 less than were seen in the first quarter of 2012.
Whilst the economic uncertainty and the ongoing difficult financial climate may continue, the Bank of England’s stimulus measures are clearly having an impact. With many of the world’s central banks following a similar directive an improvement in property markets across many economies is set to follow.