A benefit of PLC’s desirability and exclusivity is that it is very difficult to get hold of without expert help and knowledge. Located over just 13 square miles, home to some of the most exclusive and best known addresses, there is almost no more land available to develop. As a result, there is little scope for new development and only around 500 additional units come to market each year. This lack of new stock puts pressure on supply and therefore prices.
The appetite for central London residential investment is stronger than ever, despite the changing tax landscape. This year Stamp Duty has increased (up to 12%) and a new 3% additional Stamp Duty for second homes and buy to let property has been announced. A new non-resident capital gains tax has also been introduced and universal non-domicile IHT applied from 2017 has been announced. However, PCL continues to represent an alternative uncorrelated asset class offering stability in a volatile geopolitical environment and consistent rental returns as well as strong capital growth.
The PCL residential market continues to be seen as a safe haven investment with global appeal. Whilst past performance is not a guide to the future, it is anticipated that PCL will continue to enjoy a strong performance which is supported by independent price growth forecasts.