2015-12-31-莱坊-UK_Prime_Country_Review_Winter_2016_5页_1mb

Knight Frank Prime Country Review Winter 2016

Market Overview:
The Prime Country residential market experienced a slowdown since mid-2014, with price growth moderating to 0.5% annually by September 2016 following the Brexit vote and various tax changes. Despite this, demand remained resilient, driven by quality-of-life factors and tax-induced buyer hesitation. Policy impacts, such as Land and Buildings Transaction Tax (LBTT) increases, influenced pricing and negotiations.

Key Trends:

• Prices peaked in mid-2014; urban and affluent areas outperformed rural counterparts post-tax reforms.
• A two-speed market emerged, with price sensitivity increasing due to value disparities and tax hikes (e.g., 3% surcharge on higher homes, impacting over 500 buyers' budgets).
• Property attributes: Fast broadband and mobile coverage rated highly (61.4%), while quality of life and school access remained crucial for movers.

Buyer Insights:

• Motivations: Quality-of-life concerns were primary (29-45% citing) for relocations; upsizing/downsizing key. Internet connectivity (64% favored) and budget constraints shaped decisions.
• 41-56% of buyers reduced budgets or extended stay timelines due to tax reforms.

Regional Analysis:

• Yorkshire and North: Low stock fueled competition; interest from Southern England buyers leveraged price differentials.
• Scotland: LBTT dominated conversations; market resilient despite uncertainty, with key cities seeing strong activity.
• South West and Home Counties: High demand from Londoners post-stamp duty hikes led to competitive bidding, driven by affordability and school/commute factors.

Global Context:
The pound's devaluation post-Brexit boosted international interest, while London's resilience amid uncertainties was noted. Future trends include sustained interest in broadband and quality locations.

Source: Knight Frank Research