London’s super-prime landlords appear to be benefitting from higher stamp duty costs and Brexit uncertainty, as reflected by a rise in super-prime letting transactions, according to a fresh report from Knight Frank.
Sellers in prime central London are struggling to attract purchasers against a backdrop of higher property taxes and weaker sentiment owed in part to the outcome of the EU vote, as more families opt to rent rather than buy property in order to avoid steep stamp duty tax bills.
Recent tax hikes on expensive homes, mean that the stamp duty on the purchase of a £15m property is now £1.714m.
Super-prime letting transactions in central London increased 16% to 109 in the year to September compared to the previous 12 months, Knight Frank said.
Almost a quarter of high-end property transactions took place in Knightsbridge, but other desirable areas like South Kensington, Mayfair, Regent’s Park and Holland Park also attracted super-prime renters.
“Given the higher running costs buyers also face, stamp duty can be a concern unless they plan to be in a property for the long-term”, said Tom Smith, head of super-prime lettings at Knight Frank.
“This is particularly the case while uncertainty surrounds the short-term prospects for price growth”, he added, reflecting the fact that property purchase prices in prime central London are currently falling.
Want to comment on this story? Our focus is on providing a platform for you to share your insights and views and we welcome contributions.
If any post is considered to victimise, harass, degrade or intimidate an individual or group of individuals, then the post may be deleted and the individual immediately banned from posting in future.
Please help us by reporting comments you consider to be unduly offensive so we can review and take action if necessary. Thank you.
.png)
Join the conversation
Be the first to comment (please use the comment box below)
Please login to comment