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Falling Demand For Top End Properties in London

One of the UK's leading housebuilders has been forced to reduce the asking price of its most expensive properties in London, as purchasers hold back from the capital's prime properties.

One of the UK's leading housebuilders has been forced to reduce the asking price of its most expensive properties in London, as purchasers hold back from the capital's prime properties.

Barratt Development has revealed that they have needed to reduce the price of some of their prime stock – properties valued at over £1 million – in order to generate interest in the market.


Highlighting the changes in Stamp Duty over the past few years and the potential uncertainty perceived in the market since Brexit, the housebuilder has said that they are being forced to make their prices more competitive, as the market becomes oversupplied with prime properties.


Barratt confirmed that they have recently decided to reduce the price of some of their prime properties located in zones 1 & 2 in London, by as much as 5-10%.


London estate agent Strutt & Parker also recently reported that the number of sales made in prime London locations had also fallen by 47% year-on-year between the summer of 2015 and 2016, as demand begins to wane.


Despite the readjustment of prices in London, Barratt has seen the demand for housing remain high elsewhere in the UK, with their latest sales figures indicating that there have been an increasing number of buyers purchasing at their developments – with particular interest in the Midlands and the North.


Commenting on the figures, Barratt’s chief executive, David Thomas, said:


‘Consumer demand is strongly supported by good mortgage availability. We are mindful of the potential for economic uncertainty created by the outcome of the EU referendum. However, market fundamentals are robust, (...)’


The Stamp Duty changes implemented by former chancellor George Osborne have also been criticised earlier this week in a new report from Oxford Economics.


The group stated their belief that the introduction of the tiered system in 2014 has affected the volume of house sales in the UK, with MPs, housebuilders, building society and estate agents are calling the Government to revert the changes in the upcoming Autumn Statement.

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