The London Residential Property Investment Market
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Deriving meaningful returns from the London residential property market has become increasingly challenging. A series of domestic and Worldwide events over the last few years have helped to foster buyer uncertainty and price sensitivity.
UK Government policy on Stamp Duty Land Tax had an initial effect; firstly with changes from a ‘slab’ system to a progressive one with new thresholds followed shortly by the imposition of a 3% surcharge on second homes and investment property purchases. While the impact of these changes were being absorbed, The UK voted to leave the EU in a referendum on the 23rd June 2016. This, some would say, shock result and the subsequent problems of negotiating a ‘successful’ withdrawal have helped to strengthen the uncertainty and sensitivity.
At the start of 2019, data reveals that in 2018 the trend in sold prices across London remained flat overall but various locations did show minor increases or decreases. Additionally, whilst transaction volume are levelling out, transaction times are lengthening with properties spending (on average) three months on the market. (source: London Insights - REalyse)