The price gap real estate between London and other regions is reduced

The luxury real estate company Savills has published its forecast for the real estate market in the UK. Average prices for luxury housing in England rose by 1% outside of London in the first quarter of 2015. For the year prices for elite real estate in England and Wales also showed a growth rate of 2.2% and this is despite the fact that in the fall of 2014 has been increased Stamp duty for properties more expensive £937500 .

Moreover, the prices of luxury properties in the suburbs in the range of 30 to 60 minutes drive from London increased by 5.8% . In contrast, prices for luxury housing in London began to decline – the drop in housing prices of “luxury” in London for the year amounted to 1.6%. Thus, the gap in prices for luxury properties between London and the rest of England began to narrow.

Of course, the real estate market in the UK has become more restrained, with an emphasis on small housing. Thus, prices for cottages rose by 4.4%, while prices for detached houses fell by 0.8%. Of course, the reason is the expectation of a tax on mansions. Yes, and the new scale of stamp duty is not added, the mood of the owners of large houses. Markedly raised taxes and in the South of England, where the most expensive real estate in such cities as St George’s Hill and Wentworth. Despite this, prices for luxury properties outside London rose last year by 2.2%, exceeding its pre-crisis highs of 6.8%.

In other regions of England prices have also started to grow outside of the cities, especially the increased prices in the suburbs of bath and Cheshire, experiencing an increased demand from young families. Property prices on the coast are recovered, showing growth over last year by 4.1%.

The gap in prices for luxury properties in urban and rural areas is declining in Scotland, where prices for mansions and luxury housing in the suburbs grew by 6% and in Edinburgh by 0.2%.

Thus, there is a ripple effect of the price distribution from the cities to the suburbs in the UK.

The company estimates Sаvills, prices for luxury housing outside of London will grow by at least 1% to the end of the year, if the “mansion tax” will be introduced. If will be introduced “mansion tax” that prices will fall by 3%, but in subsequent years is expected to increase prices by an average of 6% next year and 5% in the next three years.

® Maxim Savitsky 21.04. 2015

 Student housing in Canterbury

Investment in student housing

Investment in student housing. Luton and Richmond.

LEAVE APPLICATION FOR SELECTION OF REAL ESTATE

Immigration to the UK

In the UK, reduced Stamp duty

Why buyers from Russia should not fear sanctions

Price indices for UK property