Search
 

Property has Prospered Under Labour, Claims Agent

LONDON-Prime residential prices in London have risen by 65% since Labour came to power according to agency Knight Frank.

By Steve Killick | Updated on May 22, 2001

LONDON-Prime residential prices in London have risen by 65% since Labour came to power. David Moulton, residential research manager of agency Knight Frank, says: ‘London residential property has prospered under the Labour Government with low interest rates, falling unemployment and low inflationary pressures.’

As a result London is now regarded the residential capital of the world, consistently outperforming the rest of the UK and overseas in terms of residential property price growth. According to Knight Frank’s index of prime residential property for central London, price rises have averaged 14.5% per year compared to an annual equivalent of 10.5% during the Conservative administration between 1979 and 1997.

Unlike its predecessor, which used interest rates as a policy lever in controlling the housing market, Labour has implemented successive rises in stamp duty (transfer tax) levels, aimed specifically at trying to calm transaction activity at the high value end of the housing market in London. While the measure has proved unpopular in the marketplace, demand has been such that annual increases have been largely absorbed by the consumer as property values have spiralled upwards.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.