7th
Dec 2015
Research highlights that London's affordable residential properties sales have dropped by 50% during January to August this year.
The commercial property and real estate firm claimed that sales of 'homes' priced at £250,000 and under, experienced the largest drop of any price bands in London - 51%.
For the first eight months total number of homes' sales in the low price bracket was just 10,449, whereas in the corresponding period last year it was 21,337.
Reduction in sales across all bands was also experienced across the capital, last year 79,226 'homes' were sold which has dropped to 58,322 for 2015.
It was noted that during that the drop of sales for residential properties over £250,000 was just 17% compared with the 51% decline in the lower price bracket.
Director of the firm's London residential team, Candice Matthews, said: "While Stamp Duty’s impact on sales is undeniable, the rate of decline for homes below £250,000 is far more severe than above the much talked about million pound threshold. Even sales of London’s most expensive homes, above £10 million, where Stamp Duty costs are highest haven’t dropped off to the same extent."
She continued:"The biggest problem at the value end of the market in London is lack of supply and our analysis is a clear indictment of London’s increasing unaffordability. Rising prices have steadily eroded the number of homes coming to market for less than £250,000. Londoners with this budget are instead being locked into renting where they often face much higher monthly outgoings as a result."
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