Stamp duty and Brexit have killed the London housing market, according to a survey of property professionals.
The Royal Institution of Chartered Surveyors (Rics) has issued its most downbeat assessment of the market for five years, citing the impact of the government’s stamp duty hike and the uncertainty surrounding Brexit.
The survey found that 72% of respondents believed that the market was in a downturn, with 55% saying that it was ‘severely’ or ‘very severely’ affected by the stamp duty increase.
Meanwhile, 64% of respondents said that Brexit was having a ‘severe’ or ‘very severe’ impact on the market.
The survey also found that the number of properties being sold had fallen by 12% over the past year, with the number of new listings also declining.
According to Rics, the market is likely to remain subdued for the foreseeable future, with the organisation warning that the government’s policies are ‘killing’ the market.
‘The government’s policies are killing the London housing market,’ said Simon Rubinsohn, Rics’ chief economist. ‘The stamp duty hike has had a devastating impact, and the uncertainty surrounding Brexit is only making things worse.’
Rics is calling for the government to take action to stimulate the market, including reducing stamp duty and increasing the supply of housing.
However, the organisation’s proposals have been met with skepticism by some, who argue that the government’s priority should be on addressing the underlying issues driving the housing crisis, rather than simply trying to stimulate the market.
In the meantime, the market is likely to remain subdued, with many buyers and sellers holding off on transactions until the uncertainty surrounding Brexit is resolved.
As the market continues to struggle, many are left wondering what the future holds for the London housing market.
Will the government’s policies continue to stifle the market, or will a new approach be taken to address the housing crisis?
Only time will tell.
