London Property Sales Crashed 40% Thanks to Tax Increase

From Armstrong Economics, by Martin Armstrong

62 Cornall Gardens

Where I use to live back in 1985

George Osborne budgetThe London housing market sales has crashed to its lowest level now since 2013. We reported in November 2015 with the turn in the ECM on 2015.75 that the London property market peaked. Valued crashed by 11.5% in the first month after the turn of the ECM. Landlords are joining together to challenge the Conservative’s (i.e. Tory’s) tax hike by filing a suit in the high court against their tax increase on “buy-to-let” investment properties.  In July 2015, we warned that the Conservatives were going after the non-domiciled residents in London and that would stop the real estate boom.

The figures are now out and they show that the number of homes bought over the last year crashed by 40% between March 2017 and March 2016, from 173,860 to 102,810. “That was thanks to new stamp duty rules introduced at the beginning of last April, which hiked stamp duty on second homes and led to a buying frenzy just before the rules were introduced,” reported Emma Haslett.

Keep in mind that we are only human. Consequently, if you see municipal taxes rising in the USA, expect property values to also decline. It is the same worldwide.



Categories: Economy, Taxes

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