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New rules for non-domestic rules led to a break-in of the number of deals on the main housing market in London last month, since the interest of wealthy international buyers cooled down.
In May there were 35.8 percent less transactions for high-end real estate compared to a previous year and 33.5 percent less than the average average before the 2017-2019 pandemic for the period, according to the ownership companies Lonres.
The number of the most expensive houses in Kensington, Knightsbridge and Belgravia fell by 22.3 percent as part of the high-end real estate.
“Feedback from agents certainly points out a difficult market,” said Nick Gregori, head of the research director at Lonres, who is pursuing the Prime London market. “The values in most markets have not seen much growth.
“The recent economic data for the United Kingdom will also have little to help improve the mood. In April after the relatively strong growth in the first quarter, GDP was 0.3 percent- a larger case than expected.”
The turnover of shares with a value of 5 million GBP and over the last month fell by almost 15 percent compared to 2024 in May, while the amount of these available shares reached a “record high” after increasing by 22.4 percent in the past 12 months.
This market was particularly affected by the withdrawal of non-cathedral buyers who traditionally dominated this space, say real estate agents.
They withdrew due to changes in the non-their rules when the Labor government decided to close a gap that made it possible to use offshore trust to avoid inheritance tax.
Their worldwide assets are now exposed to 40 percent according to rules that came into force in April. This has caused a wave to leave Great Britain for more tax -friendly regimes such as the United Arab Emirates, Italy and Switzerland.
Chancellor Rachel Reeves has now prompted Chancellor Rachel Reeves to reverse the decision.
A high-ranking financier who is in frequent contact with Reeves said the Financial Times that the government tried to find a way without withdrawing the changes in non-dom changes-with a special focus on inheritance tax problems.
A second senior city personality said that there would most likely be “some changes to the inheritance tax to stop the non-icing exodus”.
The rental market was also slowly and not helped in May in May, although the number of real estate brokers were appointed showed signs of collection.
There was an annual decline of 21.7 percent for agreed latings and a decline in the new instructions by 5.2 percent, whereby the activity in both measures remained significantly below the pre -pandemic level.
The inventory of the available rental properties decreased annually annually, with 4.6 percent fewer houses on the market in Prime London at the end of May than a year earlier.
In May, however, the market recorded an annual rental growth of 3.3 percent in Prime London in May, with the average rents being transferred 32.9 percent above their average in 2017-2019.
Regardless of this, the data published on Wednesday showed that the average monthly rent in Great Britain had increased by 7 percent to 1,339 GBP per month last year, while average real estate prices rose by 3.5 percent to 265,000 GBP.
