Although this is about London, it applies to all areas of England.
“The latest set of evidence shows that the luxury market is crumbling and this is really bad news for affordable housing in London. If luxury properties don’t tempt the rich then those in a lower band will, pricing out prospective buyers with less money.
Houses in the most sought after areas in London — such as Belgravia, Kensington, and Knightsbridge — are selling at a huge discount, according to LonRes data cited by the Financial Times.
For example, 59% of sales in Knightsbridge and Belgravia were selling at a discount of at least 10%. Meanwhile over half the properties on sale in Mayfair and Marylebone had similar discounts applied. …
… Firstly, anyone buying a property over £1.5 million is stung with a huge 12% stamp duty fee. …
… Secondly, if you own more than one property, a 3% stamp duty is applied. The new fee came into force in April and is applicable to buy-to-let investors and those who are buying a second home. This 3% fee is on top of the extra cost of a new purchase in April.
The knock-on effect on affordable housing
… Investors will instead consider buying properties that fall within a lower bracket with lower fees. This only squeezes the already squeezed market.
… So what does this all mean? As London’s richest slip from luxury properties to avoid fees, they’re likely to turn so-called affordable housing into something completely unaffordable for the average Londoner.
East Devon Watch 