A fall in property values in the prime Central London market has spurred on a flurry of sales in the first half (H1) of 2017, a new report suggests.
According to the latest LonRes Residential Review, sales in the prime market surged by as much as three per cent on average in the first six months of the year.
Despite this, residential property sales in some prime fringe areas were down significantly on figures recorded last year, when swathes of buyers in early 2016 rushed to beat unfavourable Stamp Duty Land Tax (SDLT) changes phased in by former Chancellor George Osborne in April that year.
LonRes’ report estimates that the SDLT changes directly hit property prices in the prime market, which fell on average by 4.4 per cent in the first half of 2017.
However, it suggests that the fall in values has attracted an increase in buyer activity, while separate reports suggest that an increasing number of overseas investors have been eyeing up London residential and commercial property and taking advantage of the weak pound.
As Trever Abrahamsohn, founder of North London estate agent Glentree International said last month: “Word is out amongst the international community, that property in ‘the greatest city on earth’ is cheap.”
Glentree’s recent figures have noted a substantial rise in enquiries from potential buyers in Iran, the Middle East and Eastern Europe.