The recent report of property website Rightmove had indicated that the prices in homes located in north east of England is rising while its counterpart in Kensington and Chelsea are declining. This observation was reported on theguardian.com and is a remarkable reversal of trends reported in recent months.
In the posh boroughs of Chelsea and Kensington, the average home price fell significantly, about 7.2 percent or about £178,000. Thus, the average price is now pegged at £2.29 million. On the other side of the divide, prices increased by an average of 2.1 percent or about £147,251, which is the highest increase of prices in the United Kingdom for the period.
Rightmove Director Miles Shipside, "Top-end sellers have a propensity to prioritize the more certain excitement of summer holidays over the potential excitement or perhaps disruption of putting their property for sale at this time of the year."
Shipside added, "The fall in inner London is also likely a reflection of the slower market in more expensive areas, with demand moving to outer London boroughs with more affordable prices," as reported on cityam.com.
There boroughs of London that registered the highest increases were once the more unpopular ones in recent past. These, according to a report from hitc.com, were Forest, Hilingdon, Merton, Redbridge and Waltham. Overall, the price increase in these areas topped 15 percent over the year, according to a report from hitc.com. On the other hand, the other posh areas such as Fulham, Islington and Richmond had their prices remain the same over the year.
In related news, the prime London property market may need to find ways to absorb the effects of a recent measure submitted by George Osborne removing foreign owners of UK residential property the last tax advantage available to them. In a report from ft.com, the plan starting April 2017 is to impose inheritance taxes on UK properties owned by foreigners, often through offshore companies. The most affected areas are Westminster, Kensington and Chelsea.
With prices in these areas falling, another tax levy would surely put the prices in the area in a further tailspin.
