Prices for luxury housing in Central London has increased by more than 20 times in 20 years

The real estate market of Central London continues to experience the impact of the uncertainty related to the taxation of real estate sector. Last year, this uncertainty was associated with the outcome of the elections to the Parliament, which was in may of 2015, and a capital outflow due to the increase in Stamp duty for properties more expensive than the £1.1 million And now a new blow to the sector of real estate. Announced in the fall of 2015, the increase in Stamp duty of 3% for investors and second home buyers, will provide additional tax burden to investors and investors rush to complete the transaction until 01 April 2016, when it will come into force new rules.

The report, presented by elite real estate Knight Frank, explains that measures to increase the tax burden was caused by the limited availability of housing in London and in high demand, which caused excessive inflation in the market. This was particularly noticeable at the end of 2014, before the introduction of the new scale of Stamp duty. However, after the introduction of the new scale, it became clear that the real estate market of the United Kingdom quickly adapted to changes, especially in the low price segment and the largest increase in prices in 2015 were again observed in the range of £1 million. up to £2 million

Over the past 20 years, real estate Central London experienced a huge rise. The price increase was continuous from the 1st quarter of 1995. There is an example that the facility , which cost in 1995 of £50,000 now worth £1180000 , which means 2264% growth for 20 years. According to Knight Frank, the government decided to stop this uncontrolled growth of prices, which was caused not so much by demand from British buyers, as the interest of foreign investors to attractive in all respects to the housing market of London. The government hopes that despite the increase in Stamp duty , the property market of London will always remain a lure for people all over the world. And the tightening of conditions for investors not hurt to stimulate the affordable housing market, without which it is so suffocating Britain.

® Alice Morgan. G. 02.01.2016

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