> Sales Market Comment Spring 2016 | Plaza Estates London
Sales Market Comment Spring 2016
By Eitan Fox
// Wed 6th
the forthcoming EU referendum in June, whether the UK will remain “in” or “out” or as it is known “Brexit”,
As we enter the second quarter for 2016 the prime central London residential property market has been affected by two significant announcements which will continue to impact on what happens in the next few months.
In the budget the UK Chancellor continued his policy of tax raids on buying property, with a further increase by 3% on stamp duty for people who wish to buy second homes.
Also, the forthcoming EU referendum in June, whether the UK will remain “in” or “out” or as it is known “Brexit”, has had an immediate impact on the currency rates and the fall in the value of the pound sterling. Over the past 18 months the sterling has dropped 20% against the dollar and weakened against the Euro.
For many dollar investors buying now could be the very best opportunity to take advantage of the financial and political climate.
The market has already been through a correction of circa 10% since the high of mid 2014 and so this along with the favourable currency rate is effectively a 30% swing in favour of the dollar based buyer.
This more than counterbalances any stamp duty increases we have seen in the last 18 months. The smart long term investors have already been tempted to come back into the market and I expect this trend to continue.