Last month, the prices in the prime residential market of London fell by about .3 percent. This is the steepest monthly decline since during the summer of 2010. The annual growth rate also slowed down to 1 percent and is recorded to be the lowest rate since the same month in 2009.
The results shown by the latest data has the firm Knight Frank revised its 2016 forecast for the property sector from 4.5 percent down to 2 percent. According to the head of London research of the company, Tom Bill, even though it has just been 11 months since the Chancellor has raised the stamp duty for properties to about 1.1 million pounds, the consequences for the said act has only been evident in the last few weeks. The spring selling season was generally overshadowed by the election and after a lull in the market in the summer time; the autumn market has also been the first reliable test of the market’s sentiment since the increase in stamp duties. Autumn is usually deemed a more active time of the year in the market but in the final months of this year, there has been a standoff between the sellers and the buyers.
There is a strong degree of nervousness on global economic events like the tumbling down of the Chinese stock market and the fact that there are some markets that have experienced strong price growth in the recent years. Buyers have already made their calculation and came up with the conclusion that it will take them a longer time in recovering the extra stamp duty levied upon them in house price inflation and they are expecting a lower asking price which is something that the sellers will not likely concede. The figures reported also showed that the number of exchanges happening within the three months to September was lower by 17 percent compared to that last year.
This development in the bustling metropolis will also affect businesses directly related to the property sector like those engaged in painting and decorating both commercial and residential properties. MC Decorators Ltd, Northampton will be one of the hundreds that will be impacted by this news.