Price Growth in Prime Central London Eases as Stamp Duty Uncertainty Extends

The Chancellor’s latest stamp duty increase adds an element of uncertainty as tentative signs emerge that buyers and sellers are adjusting to last year’s reforms, says Tom Bill.

Additional findings:

  • Annual growth slowed to 0.9 per cent in November after prices fell -0.3 per cent from October
  • In the six months to October, where asking prices fell by 10 per cent to 20 per cent, exchanges took an average of 24 weeks
  • Viewing levels in October were the third highest since the start of 2014
  • Prime London is in the middle of the pack compared to global cities for tax and holding costs
  • Macro View: The timing of a Bank of England rate rise

Tom Bill, Knight Frank’s head of London residential research, comments:

“Annual growth was at its lowest level since October 2009, with a monthly decline of -0.3 per cent contributing to the slowdown. The Chancellor’s latest announcement came as tentative signs have begun to emerge that buyers and sellers are adjusting to previous stamp duty changes introduced in December 2014.

“After a year under the new system, which raised rates for properties worth more than £1.1 million, a growing number of vendors have begun to set asking prices that reflect the more subdued level of demand and heightened sensitivity to pricing among buyers.”