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Home»Society»London elite real estate market may collapse due to new taxes

London elite real estate market may collapse due to new taxes

January 14, 2019

The British authorities intend to raise a stem collection for transactions, implying the purchase of elite real estate, the cost of which exceeds the mark of £ 2 million. If earlier this type of operation was provided for a fee of 5% of the amount, now it is increased to 7%. If the buyer of the facility is a legal entity, then it will have to pay all 15%. Realtors puzzled this innovation: the effect can be uncontrolled and the whole industry can fall in the future.

Even if all houses are used in all houses with electric power, this will not save the situation in the British real estate market.

Note that the main advantage of London Residential Real Estate has a relatively low rate of expenses for its purchase for foreign investors. However, with an increase in the coat of arms, this situation will change in the root. For buyers of real estate in the premium segment, this means that now buying real estate in Britain, they will be forced to overpay dozens, or even hundreds of thousands of pounds in excess of the initial value of the object.

In addition, transactions for legal entities are concluded quite often, so many will not be able to avoid this financial burden.

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The cost of premium housing in the center of London reached its maximum the cost of premium housing in the center of London reached its maximum reached the price characteristics of elite housing in the center of London in July 9.6% in comparison with similar indicators of July 2010. In the rest of the UK, in general, prices have decreased. According to Knight Frank, in just one month, London premium housing has grown in price by 0.7% to the maximum value. The cost of renting housing of this level also increased by 0.3%, which is also the largest indicator. In addition, rental rates on business class housing are 1% exceeded the maximum rates of March 2008. The peak value of growth in the past six months has been recorded in the areas of Mayfair (7.2%) and Chelsea (7.7%). At the same time, the other area of ​​the capital – Belgravia distinguished himself the largest increase in the size of the rental rates over the past three months – they increased by 1.8%.According to experts, such indicators of the development of the business class real estate market in the center of the British capital are achieved only due to a deficit of the proposal of collapsible modules, as well as due to foreign investments. In addition, real estate experts advise customers to take a closer look at housing in other areas of London. For example, in the southwest of the metropolis, the rental cost has already risen by 6.9%, and the purchase prices of apartments also increased by 1.7%.

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