After in 2014 was raised the stamp duty on the purchase of property in the elite areas of London, the price of luxury homes and apartments began to fall. It turned out that the potential owners of premium facilities switched to rent. In fact there are reasons.
When buying a home for 15 mln pounds stamp duty will count 1.7 mln pounds. This money will be enough to rent this house for 3 years. If you already have a property in the UK, in addition to the stamp duty you are required to pay 3% of the value of the second object.
Market experts believe that there are two reasons for such drastic measures:
1. "Panama" scandal - a leak of information on offshore companies that are associated with the real estate in London.
2. The possibility of exit of the UK from the European Union.
Let's look at the statistics. In March 2016 it was recorded twice more offers for lease properties priced from 10 mln pounds than in the same period of last year. But the sale of premium properties was 33% less.
According to the British private agent Henry Pryor, no one thinks that the luxury homes in London will rise soon. On the other hand, potential buyers are inclined to believe that prices will fall. Therefore, before making the decision about buying a house, it is wiser to rent it first.
However, the real estate market in the UK has been gradually rising. In April of this year, prices rose by 1.3% compared to March and by 7.3% compared to April 2015. In London we see a slight price increase of only 0.3% for the month. Most risen are the properties in the East Midland area (by 3.6%).
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