This, in turn, should lead to fewer ‘price reductions’ which have been very apparent towards the latter part of 2012.
“In the early part of 2013, we anticipate some restructuring and transferring of ownership due to the proposed annual charge and introduction of CGT on property priced at £2m and above and owned by ‘non-natural persons’. Investors would prefer to pay the 7% stamp duty on a transaction rather than the annual charge and have a CGT liability. We also believe that the Chancellor may introduce an exemption for British development companies and landed estates in his Autumn Statement on 5th December; the Government needs these companies to be buying and developing in order to boost the economy.”
Lucy Morton, senior partner and head of lettings, adds: "As the demand from single professionals and couples continues for one and two bedroom properties to rent, we anticipate that rents will rise marginally in 2013. This will push domestic tenants further out to Fulham, Clapham and Battersea, which in turn puts pressure on prices filtering out of PCL. We believe these areas will see greater growth in rents than the core PCL.
“We are being cautious with our predictions due to the recent spate of job cuts in the City, and therefore we cannot agree with some of the predictions which state that rents will rise overall by 5% next year. It will be interesting to look back at the end of 2013 and see if these predictions are accurate.
“There are less family houses available on the lettings market, and we do believe that provided demand continues to be strong, we will see increases in this area of the market next year. The lettings market has become much more seasonal and families do not tend to move after September and before April.”
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