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Dynamics Of The Prime Central London Market

Dynamics Of The Prime Central London Market - Humberts.com

For the first time since 2014 we’ve sold to several international investors

David Adams - Director, Mayfair

The increase in tax for an average priced Prime Central London Property (PCL) has been dramatic, even more so for the very top end of the market. For a £5 million second home, the tax payable is now £663,750, an effective tax rate of just over 13%. This is critical for prime London, where a significant proportion of the market are second home buyers.

Top End of the Market Harder Hit

In the £5 million plus market, comparing current activity with 2014, volumes are 30% down. The impact is still significant, though less pronounced for the £1–2 million and £2–5 million sectors of the market, where transactions have fallen by 23%.

UK Top for Property Tax

Looking across the 35 countries with property tax data tracked by the Organisation for Economic Co-operation and Development (OCED), the UK raises the highest proportion of tax through property (expressed as a proportion of GDP). This may be understandable against less developed nations but even against its G7 peers the UK proportion is high. 
plus market, comparing current activity with 2014, volumes are 30% down. The impact is still significant, though less pronounced for the £1–2 million and £2–5 million sectors of the market, where transactions have fallen by 23%.

Dynamics Of The Prime Central London Market - Humberts.com

Tax revenues, according to HM Treasury, have not been as badly dented by falling PCL transactions volumes as expected. This is partly down to higher tax per sale but also because the tax on pre-sales of new build homes is payable on completion, so the revenue from forward commitments made in 2014 is collected up to two or three years later.

Dynamics Of The Prime Central London Market - Humberts.com

To download the full Humberts Market Insight PCL Report, please click here

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With a strong background in marketing and new media, Matt leads Humberts digital strategy, joining the company in 2015.

Humberts marketing

Matt Roffe

Marlborough

01672 518181