London’s property market is “literally grinding to a halt”, an agent has said.
Robert Nichols, managing director of Portico which incorporates the former brands of Bushells and Edmund Cude, said Stamp Duty changes and the dearth of interest-only mortgage are proving a “double whammy”.
Portico said that in the first half of this year, Stamp Duty reforms resulted in an immediate fall in transactions.
It said that the “contagion” meant property transactions were down in 31 out of London’s 32 boroughs.
Using Land Registry data, it says transactions are down in boroughs where the Stamp Duty changes, which penalise higher value properties, have had limited impact.
It cites Greenwich, where transactions were down 24% in the first half of the year, Merton down 22%, and Hackney down 20%.
Nichols said: “With volumes across London now down 18%, and the recent policy changes now firmly entrenched, the capital’s housing market is literally grinding to a halt.
“The law of unintended consequences may well be relevant here.
“The combined impact of almost total lack of interest-only mortgages for the mid-market, with Stamp Duty changes at the top end of the market are proving to be a double whammy of government policy having a major impact on London’s housing market.”
| LONDON BOROUGH | TRANSACTIONS OVER H1 2014 | TRANSACTIONS OVER H1 2015 | PERCENTAGE CHANGE |
| Hammersmith and Fulham | 1,412 | 980 | -31% |
| Tower Hamlets | 2,654 | 1,836 | -31% |
| Kensington and Chelsea | 1,445 | 1,006 | -30% |
| Westminster | 1,814 | 1,272 | -30% |
| Camden | 1,388 | 1,013 | -27% |
| Greenwich | 2,145 | 1,634 | -24% |
| Southwark | 1,910 | 1,449 | -24% |
| Wandsworth | 3,048 | 2,320 | -24% |
| Islington | 1,366 | 1,060 | -22% |
| Merton | 1,560 | 1,220 | -22% |
| Richmond Upon Thames | 1,647 | 1,290 | -22% |
| Brent | 1,384 | 1,091 | -21% |
| Hackney | 1,368 | 1,100 | -20% |
| Haringey | 1,355 | 1,095 | -19% |
| Havering | 1,940 | 1,573 | -19% |
| Newham | 1,409 | 1,135 | -19% |
| Hounslow | 1,614 | 1,346 | -17% |
| Kingston Upon Thames | 1,337 | 1,116 | -17% |
| Lambeth | 2,309 | 1,925 | -17% |
| Redbridge | 1,689 | 1,395 | -17% |
| Barnet | 2,366 | 1,985 | -16% |
| Lewisham | 2,131 | 1,795 | -16% |
| Bromley | 2,906 | 2,470 | -15% |
| Croydon | 2,854 | 2,422 | -15% |
| Enfield | 1,825 | 1,577 | -14% |
| Hillingdon | 1,743 | 1,537 | -12% |
| Waltham Forest | 1,636 | 1,437 | -12% |
| Ealing | 1,639 | 1,462 | -11% |
| Harrow | 1,297 | 1,186 | -9% |
| Bexley | 1,777 | 1,651 | -7% |
| Sutton | 1,481 | 1,418 | -4% |
| Barking and Dagenham | 871 | 993 | 14% |
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