It was good whereas it lasted however London’s property market is now going through a spring hangover as the results of the top of the stamp obligation vacation take impact.
For instance, a first-time purchaser buying a £550,000 property will see stamp obligation rise from £6,250 to £15,000 within the house of some hours.
The results of this improve is already being felt throughout the capital as knowledge from Zoopla discovered that purchaser demand is down three per cent, year-on-year, with eight in 10 Londoners anticipated to pay stamp obligation from April in comparison with lower than half at present tax thresholds.
Many first-time patrons introduced ahead their choices to purchase properties late final yr, in a bid to finish earlier than the stamp obligation thresholds change subsequent week, which has contributed to the present drop off in purchaser demand. London home worth progress at present sits at one per cent, based on Zoopla.
It’s extra possible that the Chancellor will announce extra planning reform and housing targets; the federal government had promised 150 main new tasks and 1.5 million properties this parliament, and introduced the revised Nationwide Planning Coverage Framework in December to spice up constructing and the provision of properties.
Rising and falling boroughs
London noticed a 3.4 per cent distinction in worth progress between the very best and worst performing boroughs this month. With a couple of exceptions, the extra inexpensive components of the capital fared higher.
Greenwich was the place home costs have seen the largest enhance. An inside London borough recognized for points of interest such because the Cutty Sark, the Greenwich Observatory and being the house of the Prime Meridian. It had an annual home worth improve of two.1 per cent, making the common house £415,700. Its neighbour Lewisham additionally noticed a worth improve of 1.8 per cent, with the common property costing £446,500. If the proposed extension of the Bakerloo line goes forward, it’s possible this space will get an additional enhance. Redbridge, which encompasses 35 parks, playgrounds and open areas, together with Hainault Forest Nation Park, additionally noticed constructive progress, with annual costs up 1.7 per cent to a median of £470,600.
Greenwich home costs noticed the largest enhance, whereas the Metropolis was on the different finish of the chart
PA Archive
On the different finish of the size was the Metropolis of London, a constant faller in current instances, the place costs dropped 1.3 per cent regardless of it being the house to the monetary district generally known as the Sq. Mile. Common costs right here dipped to £729,700, though very low transaction numbers in areas such because the Metropolis of London may also be the explanation for skewed outcomes.
The second-biggest faller was Hillingdon, on the Metropolitan and Piccadilly traces, with a 1.2 per cent year-on-year dip to £453,800. The second most inexpensive borough, Bexley, in Outer London, was additionally down 1.1 per cent to a median of £399,400.
“The London housing market posted a sustained restoration in home costs over 2024 as mortgage charges fell and first-time patrons entered the market forward of the top of the stamp obligation aid this April. There was a lull in purchaser demand and worth progress has slowed to 1 per cent, down from 1.5 per cent final autumn,” says Richard Donnell, Government Director at Zoopla. “Gross sales proceed to be agreed and there are extra properties on the market nevertheless it’s necessary sellers worth their properties realistically in the event that they need to agree a sale in 2025.”
The state of affairs within the capital contrasted considerably with that of the remainder of the UK. Whereas London first-time purchaser demand is down throughout all worth bands (even these beneath the stamp obligation threshold), first-time purchaser demand is greater throughout the remainder of England the place six in 10 will proceed to pay no stamp obligation on purchases under £300,000 from April. Apparently, first-time purchaser demand is greater within the South East and Midlands than it was a yr in the past as these unable to afford London are wanting additional afield to seek out a purchase order.
