Posted 12 Jan 2016
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.
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
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.
by Luke Golding