Peter Rollings commenting in response to today's budget announcements
Wed 24 Mar 2010
"The Chancellors measures are not going to help first time buyers looking for property in central London. His changes are just going to tax Londoners and the South East, where property prices are proportionately higher, harder.
"Only 3% of the homes we have for sale fit into the sub 250,000 category. Admittedly, central London may not be typical first time buyer territory, but its little wonder why. Mortgage lenders now typically require a 25% deposit from first time buyers, meaning they would need to put down over 84,000 to purchase the average London property realistic for only the tiny minority with substantial parental assistance."The end of the stamp duty holiday at the turn of the year did not have a significant impact on the London market and with so few London properties in the sub 250,000 threshold neither will this. But the increase tax payable on a home worth 1million which is not the preserve of the super-rich in the capital will hit Londoners hard. Lots of flats fit into that category in London. There will be repercussions for the wider property market down the line."
However, areas in south west London, such as Clapham and Balham, which are traditionally popular with first time buyers saw slightly reduced first time buyer demand after the end of the Stamp Duty Holiday. In Marsh & Parsons Clapham office, first time buyers comprised over a third of new buyer registrations throughout 2009 (34%), dipping slightly to 28% in February 2010. In Battersea, 30% of new registrations were first time buyers in 2009, which fell to 20% recently.
Peter Rollings said: "Central London is in effect inaccessible for most first time buyers, but areas like Clapham although not immune to the impact of rising prices - remain ever-popular destinations for young professionals looking to buy their first home. These areas will benefit from the Chancellors benevolence."
For further information please contact:
The Wriglesworth Consultancy Tom Urpeth / James Staunton 0207 427 1400
Marsh & Parsons has been part of the London property scene since 1856. The sales and lettings agent has 14 offices situated in prime positions across central, west and south London. They have an intimate and extensive knowledge of the area.
Marsh & Parsons are an independent and professional firm with a 'can-do' attitude covering all aspects of residential property. They aim to establish individual relationships with clients through a business built on energy, agility, professionalism and knowledge. Their business aim is to be the agent who not only understands the local area around their offices better than any other agent, but also to be at the heart of the community.