House prices in London are still rising.
The average house price in the city rose nearly 10 percent between November 2019 and November 2020 to about £ 514,000, just over $ 700,000, according to Bloomberg News. This figure is based on British government figures.
Values are affected by a number of elements, including a sharp rise in demand for spring foreclosure and a reduction in home sales taxes, which can be worth up to £ 15,000.
Especially in the luxury market slowed down in the first half of 2020 immensely, with 68% fewer trades in the first six months of the year compared to the same period a year earlier. However, prices remained high.
While the gains recorded in November are good news for homeowners, it also means that fewer people can afford to shop at all. According to the publication, the average price of a house in the city is twice the national average.
Although some Londoners have bought houses outside the metro area – a post-market trend seen in many major cities – prices in inner London have risen more sharply than outer boroughs.
The Bureau of National Statistics said it could be because buyers want to take advantage of tax cuts on expensive homes and investor demand.
Demand in inner London could remain high in the spring, ahead of a property tax increase due to take effect in April. AND deduction of turnover tax for overseas buyers has recently expired and some retailers fear it could discourage foreign buyers from coming to the UK [Bloomberg] – Dennis Lynch