London’s becoming a renter’s town

Georgian houses in London

From the New York website: With high real estate taxes and the uncertainty surrounding Brexit causing home price to tumble, London is becoming a renter’s town.

As buyers take a “wait and see” approach, rental agreements jumped 23 percent during the three months between September and November compared to a year earlier, according to Knight Frank.

For expats living in London, the U.K.’s stamp tax on transactions is also an issue, the Wall Street Journal reported. Since 2014, taxes on homes valued at more than $1.15 million went up on a sliding scale. And in April, another 3 percent was tacked onto the sale price for foreign buyers. Brokers say some clients are choosing to rent instead.

According to Knight Frank, home prices in central London dropped 6 percent on average in 2016. This spring, investment fund Lennox Investment Management was going to sell two houses and two condos for $74 million combined, but opted to rent out the properties instead. [WSJ] – E.B. Solomont


Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s