The number of new homes breaking ground in central London has plunged by 75% year-on-year as housebuilders put planned projects on hold, and in some cases, scrap them altogether, in light of falling prices in the capital.
According to fresh data from JLL, just 1,270 residential properties were started in zones one and two in the final quarter of 2016, the lowest total for five years, as the “particularly low” figures seen in central London during the first three quarters of the year continued.
Stamp duty, in particular, continues to have a detrimental effect on the housing market in central London where properties command a price premium, resulting in a 10% levy up to £1.5m and 12% above that figure, which largely explains why fewer property transactions and lower prices are being achieved.
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