Shift in Buyers and Sellers in Central London Property Market
Other Important Trends
The vast majority of this year's property investment transactions have been for primary homes. This is a stark change from 2017, in which only half of all real estate transactions were for this purpose. Even more, telling when it comes to trends is the fact that just one-quarter of all real estate purchased consisted of primary homes.
Dell believes that the decrease in how many buyers are purchasing primary versus secondary homes is directly related to the increased stamp duty. The three percent increase in additional properties has led more buyers to be interested in primary homes and fewer to consider buying secondary homes as a form of investment. Plus, London has been earning a stellar reputation in recent years for both its job markets and its schools, making it a go-to destination for both business professionals and families.
Understanding Tax Trends
The amount of taxes taken from stamp duty receipts has been on the decline. This stagnation coupled with the actual reversal of tax receipts is likely due to the trends discussed above. This constitutes one of the first examples of actual evidence to support the idea that higher tax rates don't actually increase governments' tax takes.
What to Expect in the Future
It's safe to assume that the number of UK buyers will continue to rise. Dell believes that most international buyers will prefer to continue waiting. Once house prices have stabilized post-Brexit, they will begin investing again. Some UK investors are doing the same. Most families looking to move into new primary homes in the London area have already had their confidence restored. This trend is likely to continue in coming years.
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