According to new research, the introduction of increased rates of Stamp Duty Land Tax (SDLT) for properties worth more than £1million has had a significant impact on the prime regional housing market since the reforms first took effect.
The news comes after a study carried out by Savills estate agents revealed that the UK’s prime regional housing markets have shown ‘headline price growth’, whereas prime London house prices have fallen by an average of 3.6 per cent from record values recorded in 2014.
By comparison, growth in the ‘outer commuter belt’ rose by 3.6 per cent, according to the research.
However, in the last three months growth was significantly reduced in most markets following Britain’s vote to leave the European Union (EU).
Lucian Cook, residential research director at Savills, said: “The introduction of higher stamp duty rates certainly shifted the balance between prime London and the regional markets.
“Londoners looking to make the move out will be watching the value gap closely to ensure they do not miss the real buying opportunity.
“However, the softening of values in the suburban and commuter markets closest to London over the past three months, and slowing of growth in key regional city markets, suggests sellers cannot be complacent”.
Latest posts by Warren Baker (see all)
- Undeniable positivity among the UK’s tech start-ups - March 20, 2017
- Contentious Stamp Duty surcharge raises almost £1.5billion - March 16, 2017
- Young British businesses are hungrier for growth, study suggests - March 13, 2017