The latest review of Prime Central London property, (defined in the report as the Royal Borough of Kensington & Chelsea and the City of Westminster), has revealed a sharp rise in the number of rental properties listed on the market as homeowners fail to find any new buyers.
London Central Portfolio (LCP) reports in its review, (using quarterly statistics released by HM Land Registry on December 19th), that buying transactions in prime areas of the capital have collapsed, falling by 24% in Q3 2016, compared to a year earlier.
LCP reports: ‘The past 12 months not only witnessed a marked slowdown in sales activity as stamp duty changes dramatically affected sentiment but uncertainty has been a recurring theme, both before and since the UK’s Brexit vote. With these headwinds, the year has seen the PCL market fragment. This has created a watershed at £1m, above which tax is having the most significant effect on investor decisions. As a result, property prices at the lower end have shown modest growth whilst they have fallen at the luxury end.’