The British luxury housing market keeps increasing despite Brexit and the recent changes implemented by the government in the Stamp Duty Land Tax.
The luxury properties’ selling in the United Kingdom (those worth more than one million pounds) has increased up to 12% in 2016 with regard to the previous year despite implemented changes in the stamp duty and the Brexit’s political and economic uncertainty.
In such a way, the number of trading operations of these properties has reached up to 6.684 this year. London itself has a concentration of 8% of this year-to-year rise, with 4.238 operations (In the north-east of London this raising has increased up to 83%).
The Stamp Duty Land Tax (SDLT) is applied to second-home buyers and buy-to-let investors that acquire a property from last April 1st.
In this regard, these changes have modified the luxury housing market. Thus, the high-net properties’ selling average price has gone down from 1.8 million pounds in 2015 to 1.7 million pounds this year. This slight drop has provoked, however, that the luxury renting market, which are those where the rent average is of or over 5.000 pounds per week, a boost of 16% with 109 operations in 2016.
For this reason, investors are changing their strategies and they are drifting to long-term investments in which assuming the Stamp Duty’s payment will be more profitable instead of short-term investments, in which uncertainty over prices’ evolution are still pervading.
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Del Canto Chambers’ Editorial Board