Current state of London property market analysed | 4 December 2012
Uncertainty in future tax reforms and regulation is making London’s luxury property market a mixed bag for some, according to a number of experts speaking to londonlovesbusiness.com.
Sales of Greater London homes worth more than £2 million fell by 53 per cent compared to the same period last year, according to the Land Registry – figures which have ‘struck a chord with buyers and sellers alike’.
However availability has fallen, leading prices to rise according to thefinancepages.co.uk – which could interest existing luxury property owners looking at the value of their property.
Many reforms earmarked for the British property market, such as capital gains tax, will hurt offshore firms holding real estate for investment purposes but such measures are not likely to hinder the popularity of purchasing property in the capital.
Dajit Sandhu, director of London property finance company Urban Exposure, commented on the state of the London property market.
He said: “The chancellor and the exchequer have made a massive miscalculation in sending out a message that foreign buyers are not welcome in the UK. However comparatively speaking, London is still a very attractive city for the global rich, and they will always buy here.
“While supply is unable to meet London’s huge housing demand, prices will continue to rise.”
Patrick Bullick, the London chairman of the National Association of Estate Agents, added: “Not all of these taxes are bad, but we need clarity. We just hope that Osborne makes some clarity on what he is proposing to do. Only when we have this, will the market act accordingly.”
The views expressed in this post are those of the author and are not necessarily those of Qube Global Software. All facts are verified where possible directly by the author.
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