London home owners are showing reluctance to put their property up for sale. Apparently, they are uncertain about the current situation in the industry caused by after effect of Britain exit from European Union and increased tax on stamp duty, reported by Rightmove, an online real estate portal.
In January of 2016, the average asking price of a property in London increased by 1.4 per cent touched to 624,953 pounds. Despite that the many Londoners are hesitant to sell resulting only few property owners were in the market. Last year the new listings rate is decreased by 14 per cent.
“Owners now seem well aware of the more challenging conditions, with the high stamp-duty costs and Brexit uncertainty perhaps making them hold back from trying to sell,” says Miles Shipside, Director, Rightmove.
According to Rightmove, the effect of Brexit and the increased taxes has been hitting not just London but across UK. The asking price of a property across UK is increased to 3.2 per cent which is 0.4 per cent higher than last year.
The government is working on making new policies after Brexit move that will hopefully clarify most of the doubts of people residing in UK. Until then UK real estate sector will continued to be declining.