High Stamp duty has a stronger impact on the real estate market of London than Brexit

Changes in taxation of real estate of London, which was hosted by the government of great Britain, a much stronger impact on the prices of elite housing market in General, rather than the decision of the British to leave the European Union. However, the referendum has created a short-term mood of uncertainty, which certainly affected the behavior of market participants.

This conclusion led the study conducted by Knight Frank. Over the past year, prices in the elite residential market in London fell 1.5%, and the number of potential buyers decreased by 6.2%.

The most resistant to change was the market of elite real estate of London in a cheap price range up to £1 million, where prices have even risen in the last year by 1.1%.

Tom bill, head of London offices at Knight Frank, believes that early indicators suggests that Brexit strengthens existing trends in prices and, given that until 2014, the pace of price growth was too fast, not to mention the positive impact of the referendum in this part.

Despite the widely disseminated by various media opinions about the impact of Brexit on the markets of real estate of the United Kingdom, the main factor affecting the London property marketremains high Stamp duty, increased twice in the last 18 months. The results of the referendum only further lowered the high expectations of the sellers. If the referendum result was the opposite, perhaps on the market again came to rascoleste between the demands of sellers and buyers ‘ expectations, and this would entail further negative processes.

After the referendum, buyers began to demand from sellers of discount, referring to the situation of uncertainty in the markets. Sellers, who before the referendum, set reasonable prices, began to receive requests from buyers. Those sellers who inflated prices, are now forced to behave more flexible.

In Belgravia, where manufacturing has been the weakest over the past two years, the sellers it is best to go on good discounts. Combined with a 10% depreciation of the pound sterling against the U.S. dollar, this area has become the most attractive to buyers and have experienced the best activity in the past month.

A similar pattern in Listbridge. Having experienced a 12-month period of depression in the market and providing substantial discounts, sellers are seeing good demand in July, fueled by the fall of sterling against the dollar, don’t want to make concessions, especially after the 23 of June, market activity is quite strong.

Thus, contrary to the predictions of numerous media, the real estate market of the London feels quite good after a Brexit , while in search of a balance between the expectations of sellers and by the buyers.

® Helen Entree. 11.08.2016 G.

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