Sales rising in some parts of central London after market were hit by tax change
Some prime property markets in central London are adjusting to the new stamp duty landscape more quickly than others and sales are rising, the latest research has found. Demand and sales volumes have continued to improve steadily in 2017 as asking prices come down, although the scale of these rises is not uniform across all markets, according to the latest prime London sales market insight report from real estate firm Knight Frank. It says that a number of economic, political and policy factors have affected the market over recent years, not least the snap general election earlier this year which weakened transaction volumes marginally over the summer. However, deal volumes were up by 6% year on year between January and August as buyers and sellers increasingly assimilate higher rates of stamp duty, LonRes data shows. The number of new prospective buyers rose by 8% over the same period, according to Knight Frank data. A separate analysis of Knight Frank and LonRes data shows Chelsea registered the largest decline in sales volumes in prime central London between the first half of 2014 and 2016, a fall of 54% compared to an average of 38%. Underlining how some markets are recovering more quickly than others, transactions in this area climbed 24% year on year in the six months to June 2017, which was one of the biggest rises. ‘While there are clearly discernible signs of an improvement in activity, it is worth noting for historical context that sales volumes in prime central London remain 10% below 2015 levels and 28% below the levels of 2014,’ said Tom Bill, head of London residential research at Knight Frank.
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