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LONDON

10/11/2017

LONDON’S housing market has been bubbly for years. Since 1990 the price of the average house in the capital, once adjusted for inflation, has tripled. That growth has far outstripped what has been seen in the rest of Britain. Yet the market has turned of late—and in a big way. As recently as 2014 London’s house prices were growing at 20% a year, but they may now be falling. What has changed?

 

The prime market is struggling in part because of Brexit.

 

Yet other factors have played a bigger role. In 2014 the government made changes to stamp duty, a tax on homebuyers, raising it for those buying houses worth more than about £1m ($1.3m). Recently stamp duty became heavier still for those purchasing second homes.

 

https://www.economist.com/blogs/economist-explains/2017/11/economist-explains-6


   

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