Member Article

£1m average flat price as London property rockets

Property prices in Prime London Central rose by 15.3% in 2012 meaning the average flat price breached the £1m mark.

Research from London Central Portfolio (LCP) Limited showed property transactions fell by 9% as owners held on to assets in a “wait-and-see” climate created by proposed tax changes.

Stamp duty increased to 7% for properties purchased over £2m and 15% on properties over £2m bought through a company.

Plans for an annual levy called the Annual Residential Property Tax (ARPT), and the CGT charge on their sale, were introduced.

According to LCP average annual price growth of 8% would mean the average flat price would be little over £1.1m by the end of 2013.

LCP suggests corporate investors with budgets over £2m will hold back on purchases in the first half of the year, and wait for an exemption to the 15% Stamp Duty to apply.

This was posted in Bdaily's Members' News section by Tom Keighley .