DEMAND FOR HOUSING FALLS FOLLOWING STAMP DUTY REFORM
Only 17% of homes on the market in the Westminster area were actually bought during December, according to online property portal, eMoov.
The Chancellor’s revised stamp duty rate may have proved to be a major stumbling block, leaving legally compliant mitigation on property transactions an increasingly attractive option for many.
In the same area in February last year, 29% of homes on the market were snapped up. This suggests the legislation on homes over £937,000 has greatly affected the property market in the capital’s most affluent borough, which contains Belgravia, Mayfair and Knightsbridge.
Since we reported the news about stamp duty discouraging people across UK from moving, it seems there is now evidence of demand for housing decreasing across the city, including falls of 36% in Hackney, 35% in Tower Hamlets and 33% in Newham.
The introduction of George Osborne’s legislation last month left many people rushing deals through before it came into force, with the affects still being felt as we move into 2015.
LONDON HOUSE PRICES PREDICTED TO FALL
UK house prices rose by an average of 8% (£14,600) last year according to the Halifax, with growth of 16.8% during 2014 in London itself.
This is in stark contrast to a prediction from CEBR, who are forecasting a fall of 3.3% in the capital this year; as asking prices fall to avoid the higher stamp duty brackets and ensure homes are more attractive to prospective buyers.
STAMP DUTY MITIGATION WITH FIDUCIA
Heightened political uncertainty regarding the stamp duty overhaul has had a marked effect on London’s housing market.
Those who want to avoid paying what by many is considered to be an extortionate amount of tax on property transactions could benefit from our legally compliant and efficient stamp duty mitigation services.
Our tax management processes are tailored with your every interest in mind. To find out more, contact us or call the Fiducia team on 0161 599 200.