Prices for elite real estate of London continue to fall

Prices for luxury residential property in London has experienced a slight decline in the first quarter of 2016, testing the influence of uncertainty, which takes place on global markets and in the domestic economy.

Company luxury real estate, Savills, published a report about the elite real estate of London, according to which the average price of luxury apartments and houses in London fell 0.3% during the first three months of the year. Most of all, suffered the most expensive market of real estate of Central London, which is again subjected to shock since the moment when the Chancellor announced at the autumn session of the increase in the tax burden in the form of increased Stamp duty. For the first quarter of 2016, this sector saw a drop of 0.8% and declined 6.7% below their peaks in 2014.

In contrast, luxury properties in less expensive areas outside of Central London, in the areas of Richmond and Wimbledon, Battersea and Wandsworth, Canary Worf and Wapping virtually unchanged in the 1st quarter of 2016 , but over the previous 12 months rose from 2.4% to 4.2%.

Thus, it is clear that prices are on the upper boundaries of the market of real estate of London continue to be under pressure from changes in taxation.

The affordable real estate market, in contrast, continues to grow, receiving benefits from the scale of Stamp duty, which made significant concessions to buyers in the United Kingdom cheaper than £1 million

However, from 1 April effect of changes in the rules of payment of Stamp duty for investors in the size of the additional 3% . This means that now in a privileged position turned out to be only the buyers, buying a flat or house in England for their own accommodation. Buying a second house or apartment also comes under the new tax. Thus, the UK government seeks to solve its primary goal is to provide their own housing as much as possible British.

® Alice Morgan. G. 01.04.2016

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