The additional homes stamp duty surcharge is contributing to a slowdown in the central London development market according to JLL.
The number of units under construction in central London actually continued to climb during 2015 with a 28 per cent increase in the last year and 10 per cent growth in the second half of 2015 alone.
But “there are signs this is activity is beginning to plateau” says JLL director of residential research, Neil Chegwidden.
“The number of new unit starts in the second half of 2015 was lower than in the first, suggesting developers are beginning to slow their rate of delivery. Furthermore, and perhaps most significantly, the number of units seeking planning permission declined by 27 per cent during the second half of last year compared with H1 2015, suggesting that developers are set to slow future development rates” he says.
“This looks worrying at a time when new housing delivery needs to increase rather than fall” Chegwidden adds, saying this is “clearly” a reaction to political uncertainty, higher taxes and slower sales.
In particular the three per cent stamp duty surcharge for property investors - the core market for many central London new-build schemes - “has further dampened London residential demand” he insists.
Investment advice company London Central Portfolio says the proposed three per...
The rental market in Prime Central London has shown signs of...
The surge in properties to let which came on to the...
Buying agency Black Brick says investment in prime London’s lettings sector...
It’s tempting to think that Michael Gove’s proposed clampdown on Airbnb-style...
Councils across England could make an additional £540m a year in...
The vast majority of negligence claims against conveyancers are for relatively...
You don’t have to simply accept things as they are when...
%20-%20IMAGE%20Client%20Accounting%20%E2%80%93%20what%20are%20your%20options.jpg)
The benefits for letting agents to outsource their client accounting is...
Let's be honest – landlords are the lifeblood of any letting...
Attention estate agents: if you're looking for a bumper Christmas bonus,...
Houses in Multiple Occupation are making up an increasing percentage of...
A lettings agency has been expelled from The Property Ombudsman scheme...
The government has written to Conservative MPs promising changes to the...
There’s been at most a one per cent reduction in landlords...
Tenant groups and charities reacted angrily over the Easter weekend to...
The government has written to Conservative MPs promising changes to the...
Who are you and what does it say on...
Who are you and what does it say on...
Who are you and what does it say on...
Join the conversation
Jump to latest comment and add your reply
Developers in London are more interested in selling their Land Bank to other developers in London rather than building on it. It is a quick profit for no outlay. Always has been like it, always will.
Please login to comment