Transaction values falling in the London property market
A central London agent has said that the Government will have to address the woes of the housing market in the capital following gloomy reports from the property media.
The comments made by Wetherell, are in light of findings that the luxury market is currently dogged by “hesitation and anxiety”, a view shared by property pundits.
Figures show that asking prices in London are already down by over 3% this year, and are 15% lower than three years ago.
Asking prices are being cut as Stamp Duty increases take their toll. Recent news reports cited the case of a property previously on at over £1m which has had its asking price slashed by 50%.
This is a property in South Kensington first advertised in May at over £1.2m and now on the market at £685,000 with Foxtons.
Additionally, transactions are down and the number of homes taken off the market because they have failed to sell has grown.
However, economic uncertainty is currently creating rare opportunities for buyers, but they will need encouragement.
Wetherell said: “Uncertainty and loss of market share due to Brexit will place the Government under huge pressure to cut corporation tax, cut income tax and slash Stamp Duty.
“All these measures will be needed to keep London competitive so bold investors could now reap future rewards.”