London buyers adapting to upcoming legislation changes
The turn of the year has seen a surge in activity in the property investment market, as buy-to-let purchasers rush to secure property before the increase in stamp duty takes hold on April 1st.
Activity has been prominent in the capital, with investors in London aware of how much an additional 3% equates to in the most expensive area of the market.
Rewards
‘Buy to live purchasers can’t be blamed for stepping out of the arena for this buy to let mini-bubble,’ said Sara Ransom, director of Stacks Property Search in London. She feels that, ‘their reward is likely to be less punchy prices on the kind of property that lends itself to investment purchase. April will be a good month for non-investment purchasers of new homes where there’s a good chance that discounts of up to 3% will be on the table.’[1]
Ransom notes that, ‘at the lower end of the resale sector, buyers may struggle to negotiate discounts,’ saying, ‘the £300,000-£600,000 market has gone from strength to strength since the new Stamp Duty bands were introduced in the Autumn of 2014. The first time buyer market in areas such as Clapham, Balham and Streatham is buoyant; buyers interested in ex-council apartments in Brixton will have to work hard just to look at one before it’s snapped up.’[1]
London buyers adapting to upcoming legislation changes
Higher value, less competition
Observing that overseas buyers make up a small proportion of buyers than they did two years ago,’ Ransom said that, ‘over £600,000, there’s less competition.’ She went on to say however that, ‘the market is moving steadily and there’s plenty of demand from those upsizing to a second home, with help from the bank of Mum and Dad. But here may be a little room for manoeuvre on price if you do your research, kick hard in the right places and get your timing right. April will be a good month to be negotiating.’[1]
‘Meanwhile, the prime central London market remains in intensive care; its recovery is expected to be a slow and painful. The question is, how will prices fall before people start speculating again?’ she concluded.[1]
[1] http://www.propertyreporter.co.uk/property/what-next-for-london-buyers.html
