Westminster Prices Falling
I am not sure if this should really be called ‘the sound of the suburbs part two’ or try and think of something clever about the smartest parts of London not looking like the smartest places to invest in property nowadays?
According to the leading property services group LSL the house prices in areas such as Kensington and Chelsea have fallen by up to 22% since autumn 2014.
A report from LSL identifies that the areas of Kensington and Chelsea alone had seen prices plummet by 16% since a peak in September 2014.
Prices in Westminster were seen to fall by around 22% between a peak in November and the end of May 2015 which has been blamed in part on the December introduction of changes to stamp duty which penalises expensive properties.
Changes to stamp duty have meant that the average priced property in Chelsea or Kensington will see an increase of around £120K in stamp duty whilst buyers of properties worth less than £937K will now pay less stamp duty than they used to. This has resulted in the market slowing down and more importantly (according to the RICS) housing stock levels falling.
As we reported recently this has once again lead to increases in the suburbs both in London and other areas of England and Wales as the popularity of moving out of the city centres and taking advantage of improving transportation networks and more importantly affordable properties kicks in.
The RICS now predict that the shortages in housing stock are likely to cause house prices to rise in England and Wales by a whopping 25% over the next 5 years.
It is reported that prices in thirteen of London’s suburbs have now seen prices hit new highs, away from the South East, the strongest growth was expected in north-west England, home of The House Crowd as a result of the government’s northern powerhouse initiative perhaps this will grow again if/when the HS2 rail links are completed?
You can read more about the strengthening Manchester economy in our guides, simply click here to download the packs.