Jeff Doble, Chief Executive of Dexters, says: “London continues to perform well. However, the Chancellor needs to look at stamp duty in the £1m- £3m price bands to ensure that people who want to buy a family home in London are not penalised to the extent that they will think twice about moving. The current stamp duty arrangements at the top end of the market are also acting as a disincentive to sell. This has not only hit tax revenues but also had a major impact on related industries, from construction, to furnishings and all services related to buying a home.”
Average house prices in the UK have increased by 7.7% in the year to September 2016 (unchanged from 7.7% in the year to August 2016), continuing the strong growth seen since the end of 2013. The average UK house price was £218,000 in September 2016. This is £16,000 higher than in September 2015 and unchanged from last month. On a regional basis, London continues to be the region with the highest average house price at £488,000. The East of England is the region which showed the highest annual growth, with prices increasing by 12.1% in the year to September 2016. Growth in London was second highest at 10.9%. In September 2016, the most expensive borough to live in was Kensington and Chelsea, where the cost of an average house was £1.4 million.