Fears that London house price fall will spread through UK

Fears are increasing that a regression in the first London real estate market can spread to the country as a recent increase. stamp tax It forces sellers to reduce their prices.

Evidence shows that ultra -wealth rented in the capital instead of buying a mansion in the capital to prevent hated tax.

The stamp tax is paid by buyers when they purchase a property and two important thresholds have been changed in April – so most host pays.

The property portal zoopla found that 83 percent of buyers buy a house if they buy a house today and that they would pay stamp tax compared to 49 percent before April.

This led to more recipients to negotiate a price cut to compensate for extra taxes.

Approximately 951,000 now pays tax. This is still below a summit of 1.2 million, but as more people are dragged into a tax network, the figure will rise sharply. It comes from the property agreements of one -third of the money collected with a stamp duty.

In London, where real estate prices are higher than the rest of the country, they cost home carriers from April to £ 2,500 if they buy an average house that costs 532.449 £.

However, the effect of the increase is the most felt in the center of London, where prices decreased up to 30 percent to attract foreign buyers.

The price is important: a graphic showing average real estate prices throughout England since July 2015

In Belgravia or Mayfair, a stamp tax fee on a host of 20 million pounds is £ 2.3 million for the UK buyer. For a person who does not reside in the UK, the invoice that buys a second house in the city is about 3.7 million. This was seen as the entrance price to the London lifestyle.

But now Mega rich even bauling on the bill. Property experts say that the international set now prefers to buy in London.

Neil Hudson of The CoELtion Place Consultancy, “ “ `20 million pounds on a pad on the annual rent will be about 570,000 £, ” he said. ‘On this basis, if you are the British buyer, you can only rent for four years for what you need to pay in stamp tax.’

There are concerns that the inferior mood in the center of London can spread throughout the country.

Zoopla Research President Richard Donnell, “ “ 2015 at the summit of the explosion, London’s properties have been overprced and since then has been moving to the side, ” he said.

‘This is the engine of London’s home price growth, so bad news for the whole market, effects are fluctuating to other regions.’