New research from London Central Portfolio shows that London’s prime market, which includes parts of the West End, is recovering following multiple stamp duty increases.
When stamp duty rises took effect in 2014 and 2016, prices fell. However, over the last 12 months, price growth in the prime market stands at 7%.
Price paid data from the Land Registry shows that both the high-end market and ‘mainstream’ market has seen price growth over the last year.
Naomi Heaton, chief executive officer of London Central Portfolio, said: “The mainstream buy to let sector in prime central London has experienced unusual volatility over the last two years, suffering from a number of tax changes aimed at cooling the sector”.
She continued: “Despite this, we have now seen signs of recovery as buyers absorb the additional cost of investing into a world class, safe haven asset class.”
Changes to stamp duty have had more impact on the prime market than the mainstream markets generally, but it’s encouraging to see that growth has taken hold in recent months:
“It is reassuring to see that Land Registry data is showing prices in the premium sector down just 3.3% below their 2014 levels” Heaton added.
There may be more changes to stamp duty ahead, with the Autumn Budget set to be published on 22nd November.
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