30 Jun

London high-end market slows down

London high-end market slows down

The demand for high-end properties in the capital has slowed considerably since the General Election.

Data from estate agent Knight Frank shows the higher stamp duty rates may have put off many buyers, even though it had been expected a Conservative victory would encourage a growth in activity - especially as the potential threat of a mansion tax had subsided.

In June, the annual rate of price increases in central London declined by two per cent - compared to 8.1 per cent in June 2015.

Tom Bill, Knight Frank head of London residential research, said: "Seasonally you tend to see prospective buyers registering with estate agents in May. But that hasn’t happened post-election."

He added that changes to the stamp duty in 2014 have had an impact on the activity in the prime luxury market, with many buyers becoming more sensitive to prices.

The duty payable on a £5 million house has risen from £350,000 to £513,750 and this means buyers are wanting to negotiate on asking prices accordingly.

There has also been an increase in domestic buyers showing interest in London property as the country’s economic recovery continues, with around 66 per cent of the prime London market being purchased by British-based buyers.

Knight Frank are forecasting that central London prices are likely to continue to be downbeat for the next few months before rising towards the end of the year.ADNFCR-1222-ID-801792781-ADNFCR

Cookies We use cookies to ensure that we give you the best experience on our website. To find out more about our cookies policy, see our cookies policy here or in the footer.