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The stamp duty hangover continues

Estate agent Knight Frank has warned that desperate sellers in London are dropping prices by up to 10% as buyers become more ’price conscious’ due to the recent increase in stamp duty.

The drop mainly relates to the top end of the London house market, with properties in the exclusive Knightsbridge area seeing home values dropping by seven per cent in the year up to April.

House prices in Chelsea and South Kensington are also down by three per cent year on year and 4.9 per cent respectively.

Capital boom

Other areas of the capital are still booming with house prices in March reaching an average of £534,785, according to the Land Registry. There are fears of a knock on effect across the capital with developers taking longer to off-load new homes and foreign investors venturing north.

Wider reaching

Prices in other areas of the country have seen more damaging declines with York and Humber seeing a drop of 2.6 per cent on house values over the month to March, with the Midlands seeing a two per cent fall over the same period.

The average house price in England and Wales currently stands at £189,901, a fall of 0.5 per cent from February.

This was posted in Bdaily's Members' News section by Kyle Daniels .