House price confidence levels are greatest in East Anglia…
Stamp Duty increases have hurt the luxury end of the London housing market, with buyers rushing to East Anglia instead to avoid our capital’s rising costs – growth in the city has stalled for the fourth month in a row.
Such an impact has had a positive effect on East Anglia, with the value of properties rising faster than those in London. The Telegraph reports recent findings by the Royal Institute of Chartered Surveyors (RICS) reveal price growth in London’s prime areas has faltered due to Stamp Duty increases – 10% for homes of £1m+ increasing to 12% for houses over £1.5m. An on-going lack of stock has also been highlighted as a reason for property prices continuing to rise.
The monthly report commissioned by Chartered Surveyors operating in the sales and letting markets across the UK shows 67% of respondents awarding the largest increase in property prices to East Anglia, followed by the South East and the East Midlands.
In last month’s half-yearly budget statement, Finance Minister George Osborne announced planned subsidies for builders to develop 200,000 new homes over the course of the next 5 years, at 20% below market value.
RICS commented that this news has given reason for its members to forecast the largest increase in sales in over 2 years, which they say will ultimately give rise to higher prices rather than further construction.