Prime London prices hit new high
By Bridging Loan Directory -
Prime central London prices hit a new high in July, but there is evidence that the new stamp duty regime is starting to weigh on activity in the £2m+ market
Prices rose by 0.5% in July in London’s prime central areas, to hit a new record high, according to the latest Knight Frank PCL sales index . Prices are now nearly 50% higher than the trough of the market in 2009 and 13.5% higher than the previous market peak in early 2008.
But it is worth noting that the 0.5% increase was the most modest rise since October 2010.
Also the data signals a slowdown in sales activity after the introduction of higher stamp duty charges for properties wirth £2 million or more. Overal prime sales are down 11% in the three months to the end of July compared to the same period last year, with a 29% drop in exchanges for properties worth between £2 and £10 million. But activity in the £10m+ market remains strong.
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