Taylor Scott International News
Prime property values in London are set to see modest 3% growth throughout 2016 but the fringes of the capital are expected to see much faster price rises of 5% or higher, a new forecast suggests. The market below £1.5 million is predicted o be the main driver of price growth in the coming year, as Stamp Duty continues to take the shine off the wealthiest segment of the London property market, according to the report from agents Marsh & Parson. Tooting and Queen’s Park are named in the report as the locations to watch in the coming year and agents are expecting an influx of buyers in January as the new year markets gets up to speed quickly. As a result, the popularity of more affordable and emerging locations is boosting activity and prices in these areas above levels seen elsewhere across the capital, the report explains. It points out that with direct transport links into Bank on the Northern line, and a leafy common on the doorstep, buyer demand has quickly spread from Balham to neighbouring Tooting. And in the North West, Queen’s Park is providing a credible ‘next step’ for those priced out of North Kensington and Little Venice, and is well serviced by the underground and over ground rail connections directly into Euston. With a top rate of Stamp Duty of 12% now in place, the highest tiers of the London property market have been severely tempered in recent months as buyers struggle to absorb the additional transaction levy. The report also shows that total prime London property sales dropped between the second half of 2014 and the first six months of 2015 and it is sales above £937,000, the threshold at which the higher Stamp Duty charges apply, which have seen the sharpest fall of all. In 2015, some 59% of London property sales have been for homes below the £937,000 marker, while purchases above this price threshold account for 41%, as the top of the market slows. In 2016 sellers will have to adjust their price expectations to make their properties more competitive and attractive. But properties that are priced realistically will still sell well, and quickly. At the start of this year, London homes for sale were typically achieving 95% of their asking prices, but this has climbed throughout the year to stand at 97% as of November 2015. ‘The Chancellor’s Stamp Duty changes have certainly dulled the London housing market of late, and whilst 2016 will see a return to growth it will be rather lacklustre. There now exists a fundamental unevenness between sellers who want to sell their properties at the prices they were at six months ago and buyers, who are seeking recompense for the increased Stamp Duty levelled at them,’ said Peter Rollings, chief executive officer of Marsh & Parsons. ‘It’s already started but it’s going to take a while… Taylor Scott International
Taylor Scott International, Taylor Scott
