Response to Land Registry's HPI for October 2014
Fri 28 Nov 2014
Peter Rollings, CEO of Marsh & Parsons, comments:"UK house prices are still edging forward, albeit in the shadows of the advances we saw in the first half of the year. London has considerably outperformed all other regions during the last 12 months, but growth has slowed, and on a monthly basis only edged up slightly. In addition, prices are slipping in some of the most expensive areas of the capital, with values in Kensington and Chelsea falling 2.5% over the month to October, as growth tails off more sharply at the top end of the market.
"Activity levels at the top tiers of the UK housing market has shown healthy growth, with sales of properties worth over 1 million rising 15% in the year to August 2014. But fears of a potential mansion tax could contaminate demand for prime property in the run-up to the general election. Uncertainty surrounding this and the possibility of other populist wealth taxes is putting off all buyers be they overseas or home grown, for whom Prime London property usually commands global appeal as a gold-standard asset. This could be a worrying development for Londons reputation as a business hub and natural outlet for investment, and could spell trouble beyond the capital if this lack of confidence at the highest rungs trickles down the housing ladder to the wider market. It is safe to say that ears will be pricked during Osbornes Autumn Statement next week, and all parties need to be wary of quashing the intrinsic momentum of the property market."