2015 - Overview of the UK market
Now in early 2016 we thought it would be an approprate time to look back at the last 12 month's activity, or lack of, in the Prime Central London residential market. The last 12 months have been subdued as per this independent market report from our friends at Lonres which mirror our reflections below on 2015.
- The Central London sales market was adversely affected by the considerable rise in stamp duty brought in in December 2014 for higher value properties.
- The strength of sterling against other currencies. Especially against the Russian ruble and the restrictions on a lot of wealthy Russians moving funds here.
- The early part of 2015 adversely affected by the lead up to the General Election.
- Although the Conservative Party victory was heralded as marvellous by many in our business the positive bounce expected by many has not materialised and failed to disguise the main issue of stamp duty increases
- The increase in taxes for “non-doms”.
- Rise in ATED payments for those properties held in corporate structures for the tax year 2015/2016.
- London/UK is no longer such a tax friendly place for foreign investors in residential property. As time goes by we believe they will still feel it is a location to have a base in even though the taxes are more onerous.
- City salaries/bonuses are not what they have been in the past.
Vendors need to appreciate the extra costs to the purchaser and regretfully accept that they may have to sell for less than they may have achieved 12/18 months ago