April 23, 2024

London's Luxury Property Market as Sellers Slash Prices; Government Reviews Window Regulations; Church of England Warns of Charitable Funding Losses

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Michael Gove faces pressure to reconsider health and safety regulations impacting homebuilders. Implemented two years ago, the rules mandate upper-floor windows in new homes to be at least 1.1 meters from the floor, resulting in gloomier properties. Critics argue these regulations hinder traditional architectural styles and compromise livability. A government review is underway, with optimism among critics that the rules will be amended or scrapped entirely.

The luxury property market in London is experiencing a significant downturn, with sellers reducing prices by up to 30% in prestigious areas of the city. Fatima and Eskandar Maleki sold their Mayfair mansion at a 33% discount, reflecting the challenging landscape. Similarly, a Kensington mansion sold at a 17% drop. This decline is attributed partly to a UK budget proposal eliminating tax advantages for wealthy foreign residents, deterring investors. The market's woes extend beyond London, impacting high-end country homes as well.

Homebuyers may qualify for Stamp Duty Land Tax (SDLT) refunds if they paid higher rates when purchasing their new home and sold their previous main home within three years. HMRC must receive refund requests within specific timelines, with exceptions for exceptional circumstances.

London's housing market has lagged behind the UK due to high property costs, post-pandemic trends, and rising mortgage rates. Data shows a 4.8% drop in London house prices in February 2024, contrasting with the UK's 0.2% contraction. Factors include affordability issues, Brexit, and changes in the mortgage market. The "race for space" post-Covid prolonged London's underperformance.

The Church of England warns of potential funding losses under Michael Gove's leasehold reforms. The proposed changes, including capping ground rents and abolishing marriage value, could detrimentally impact charities reliant on freehold income. The Church Commissioners anticipate significant reductions in income from properties like the Hyde Park Estate. Critics advocate for amendments to protect investors and businesses.

In summary, London's luxury property market faces challenges as prices decline, Gove reviews window regulations, SDLT refunds offer relief for homebuyers, London's housing market lags behind the UK, and the Church of England warns of funding losses under leasehold reforms.

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