Property dealers in London are reducing prices
Property dealers in London are reducing prices
04.10.2016 | 11:44
Prognosis | Survey | Prices | Investments
Property dealers in London have started to reduce prices after the Brexit because of the political uncertainty and the high property taxes in the upper market segment, which is scaring off the buyers, says Bloomberg.
Lonres company believes that approximately 75% of owners exhibited for sale luxury property in the British capital have lowered prices after the referendum on Britain's membership in the European Union.
For comparison, in the framework of 10 weeks before the vote occurred 33% rise in prices, shows the company's data.
Before the referendum the highest market segment was in doubt due to the strong increase in taxes in the sector of the most expensive properties, including the high stamp duty due at the time of conclusion of the transaction.
After the Brexit the prices of properties in Chelsea and Knightsbridge - in both most popular areas among homebuyers in London - decreased, respectively, to 9% and 7% compared to the last year, shows the data of the consultancy company Knight Frank.
Experts state that the biggest damage on this market segment was caused by the tax changes during the last year, as well as the increase in the stamp duty.
The average price of a square meter of elite housing in London after the referendum on Britain's membership in the EU has decreased by almost 4% on an annualized basis – up to almost 19 200 British pounds, reports the consulting company Property Vision Ltd.
Within 10 weeks after the vote, the sales volume dropped by 42% - from almost 7 thousand during the past year to just over 4 600 at that time.
Lonres company believes that approximately 75% of owners exhibited for sale luxury property in the British capital have lowered prices after the referendum on Britain's membership in the European Union.
For comparison, in the framework of 10 weeks before the vote occurred 33% rise in prices, shows the company's data.
Before the referendum the highest market segment was in doubt due to the strong increase in taxes in the sector of the most expensive properties, including the high stamp duty due at the time of conclusion of the transaction.
After the Brexit the prices of properties in Chelsea and Knightsbridge - in both most popular areas among homebuyers in London - decreased, respectively, to 9% and 7% compared to the last year, shows the data of the consultancy company Knight Frank.
Experts state that the biggest damage on this market segment was caused by the tax changes during the last year, as well as the increase in the stamp duty.
The average price of a square meter of elite housing in London after the referendum on Britain's membership in the EU has decreased by almost 4% on an annualized basis – up to almost 19 200 British pounds, reports the consulting company Property Vision Ltd.
Within 10 weeks after the vote, the sales volume dropped by 42% - from almost 7 thousand during the past year to just over 4 600 at that time.
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