Lon­don’s win­ners and losers

Po­lit­i­cal and fi­nan­cial un­cer­tainty may be good or bad news for Lon­don prop­erty, de­pend­ing on the post­code

Country Life Every Week - - Property Market -

in view of the eco­nomic and po­lit­i­cal un­cer­tainty caused by Bri­tain’s vote to leave the Euro­pean Union. The re­port un­der­lines the fact that 11% of all SDLT rev­enue in Eng­land and Wales is col­lected in the two Lon­don bor­oughs of Kens­ing­ton & Chelsea and West­min­ster and main­tains that the Govern­ment in­creas­ingly re­lies on Lon­don for this rev­enue, an over­all fig­ure that now ex­ceeds £6 bil­lion a year.

Cru­cially, it makes the point that al­though ‘Lon­don’s SDLT con­tri­bu­tion rose to 44.6% in the year to March 2016—from 41.5% a year ear­lier —Lon­don only ac­counted for 12.3% of trans­ac­tions, down from 12.7% the pre­vi­ous year. The pic­ture emerg­ing is one of grow­ing fis­cal re­liance on ar­eas where trans­ac­tions are shrink­ing at the steep­est rate’.

The vol­ume of trans­ac­tions in the key ar­eas of West­min­ster, Camden, Is­ling­ton, Kens­ing­ton & Chelsea and Ham­mer­smith & Ful­ham all fell by an av­er­age of more than 5% per year over the five-year pe­riod to March 2016 (Fig 1)—the first time a de­cline of this mag­ni­tude has been reg­is­tered in this many Lon­don bor­oughs since Land Reg­istry records be­gan, in 1995. Hav­ing made it a pri­or­ity to tackle Bri­tain’s ‘hous­ing deficit’, can Prime Min­is­ter Theresa May re­ally af­ford to kill off Lon­don’s golden geese?

But it’s not all doom and gloom in Lon­don’s golden post­codes, in­sists Charlie Wil­lis, who heads up Strutt & Parker’s Lon­don res­i­den­tial team.

West­min­ster -8% Is­ling­ton -8% Kens­ing­ton & Chelsea -7% Camden -7% Ham­mer­smith -6% Fig 1: Lon­don’s favourite res­i­den­tial ar­eas have seen a sig­nif­i­cant drop in sales vol­ume Fig 2 above and Fig 3 left: Nether­ton Lodge of­fers five bed­rooms and a gar­den in a quiet cul-de­sac in Chelsea, SW10. £7.25m

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