Figures released today by the Office for National Statistics show year on year growth in average London property prices, with a 14.5% increase from April 2015 to April 2016. Prices currently stand at £470,025, compared with £410,502 last year. The ONS has cited the recent rush of activity caused by those keen to beat the April deadline set for the stamp duty changes as the reason for this. This has had a knock on effect, with the ONS stating that this rush has led to a lull in transactions in April.
Robert McLaughlin, Sales Director at KFH, discusses the effect these recent changes have had on the London property market and what circumstances have led to the increase in average prices in the capital.
“We are certainly seeing more caution in the market at present. With the dual combination of the post stamp duty lull and the looming referendum, we have seen a slowing of monthly house price growth in recent weeks. However, the annual figures portray strength in the market, due to the prevailing conditions of demand outweighing supply in London.
“Despite the wider caution, buyers and sellers currently in the market are incredibly motivated, and, as a result of this foresight and planning, may have the jump on those waiting for the result of the referendum - regardless of what the outcome may be.”
Click here to find out how you may have been affected by the recent stamp duty changes.