Taylor Scott International News
The annual change in prime property values in the UK over the year to September was 2.7% on average, down from a high of 5.2% last year, according to a new analysis report. Stamp duty reform, announced in December 2014, continues to weigh on activity and price growth at the top end of the market in England and Wales while in Scotland the new Land and Buildings Transaction Tax (LBTT) is also affecting the market. Indeed, the level of LBTT for sales between £750,000 and £2 million is on average 55% higher than the equivalent Stamp Duty payable across the rest of the UK, the Prime Country Winter Review from real estate firm Knight Frank says. Meanwhile, price growth in prime town and city markets including Oxford, Bath and Bristol has been relatively robust and farmland values remained steady in the third quarter of 2015 as the market enters a period of equilibrium. According to Knight Frank indices, prime property values for homes located in town and city markets have risen by 26% since 2005 and are now 3% above their 2007 peak. In comparison, more rural properties have risen in value by 7% since 2005 and remain 13% below peak levels. Over the past year this outperformance has continued. This has been particularly evident in prime cities with strong commuting links to London, notably locations such as Oxford, Bath, Bristol and Winchester, the report explains. ‘In recent years, a return to economic growth has given a number of these towns and cities an additional lift with an improving business environment helping contribute towards higher demand for housing as people relocate to an area for work, or look to move up the ladder locally,’ said senior analysts Oliver Knight. He pointed out that a recent report from the British Bankers’ Association noted that banking jobs are shifting from London to some smaller regional locations, with particularly strong growth in Tunbridge Wells, South Gloucestershire, Chelmsford and North Tyneside, all of which outperformed London in terms of employment growth over the last year. The report explains how in 2005 there was quite an equal distribution of prime sales across the country, but by 2014 there had been changes across the Midlands, North West and Yorkshire as transactions clustered more around urban centres. A closer look at the data shows that while the volume of sales fell by 13% across the country between 2005 and 2014, in key town and city markets sales volumes at the top end of the market increased by an average of 25%. Looking ahead, the trend for urban living is expected to continue. ‘As the economy continues to recover and house prices outside of London show further growth, the trend for more London buyers to move will gain more traction and this will boost the ripple effect of house price growth from the capital,’ said Knight. ‘Infrastructure improvements, such as faster road or rail connections or the creation of new transport hubs will enhance… Taylor Scott International
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