After a slow start to 2015, the UK luxury property market appears to be rising again. Buyers are flocking in following the General Election result, confident their prized assets will not be hit by new taxes. The market, dominated by London, has long been a magnet for the world’s super rich, who have plowed millions into prime real estate in the city’s most exclusive areas and beyond. But sales in prime property slowed last year to nearly 0% and the first few months of 2015 were also slow.

According to research by auctioneers Christie’s, the rising strength of the pound has made it harder for foreign buyers to invest in UK real estate and increased the attraction of competing markets such as Dubai, which saw a 60% surge last year. However, the biggest factor affecting sales appeared to be the fear that a newly elected Labour government would impose a ‘mansion tax’ on houses worth £2m or more. Agents complained that the specter of the policy meant that all bets were off until after the election, as potential buyers played wait and see. For those that did sell, many failed to achieve full asking price. A report from property research company Londres found that nearly 40 percent of properties in the affluent core of the capital were sold below their advertised price in the first three months of 2015.

Golden deals

All of this began to change as election results began to roll in and, as soon as buyers felt confident the Labour Party weren’t going to take power, they began making offers on properties. One estate agent said the day after the election was a “golden deals day” as buyers rushed in. And they hope to beat a better surge in prices.

Foreign buyers make up a sizeable chunk of those investing in the market. For instance, people estimated that Chinese buyers account for as much as 11 percent of sales above £1m in London. Key areas for luxury buyers in London include Mayfair, Belgravia, Chelsea, and Knightsbridge. The top properties in these parts of London can sell for £30m or more, with even the smallest one bedroom flats able to command prices of £500,000.

Demand for property in the capital is spurring an ever-growing incentive for redevelopment. Thus, unwanted parts of the city will be snapped up and transformed by developers. East London has seen a significant change in recent years, with former industrial sites now serving as upmarket apartment complexes and townhouses. In addition, there’s one development is the London City Island, a 12-acre stretch surrounded completely, save for an access road, by the River Thames. Here, buyers will be able to purchase three-bedroom flats for £1.3m. And there is a range of townhouses. Architect Glenn Howells says it wants to attract both those in the financial industry and workers in London’s booming tech sector.

Out of the capital

Outside of London, luxury buyers can expect far more for their buck. As prices in the capital climb higher and higher, buyers are looking at alternative locations. Seaside towns close to London, with favorites such as Brighton and Hove, are high on the list. In the fashionable city, a six-bedroom property can be purchased for £1.5-2.6m and this would include a sizeable garden and driveway – something that’s virtually unheard of in London.

Other favorites spots for London escapees and with more modest price tags include up and coming Eastbourne and a scattering of towns and villages on the Kentish coast.

Further out, the beautiful villages of Devon and Cornwall are many people’s idea of an ideal holiday home. In these settings, a budget of £600,000 or more should find a buyer an idyllic cottage or beachside apartment and can make an ideal second home or retreat.

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