House price growth in prime central London is grinding to a halt as higher stamp duty on expensive properties hits growth.
Annual growth slowed to 0.9% in November, with prices down -0.3% on October, according to Knight Frank.
It said that Chancellor George’s surcharge on stamp duty for buy-to-lets and second homes has added a new element of uncertainty, just as buyers and sellers were adjusting to last year’s reforms.
In the six months to October, asking prices fell by 10% to 20%.
Tom Bill, Knight Frank's head of London residential research, said annual growth in prime central London was now at its lowest since October 2009.
“The Chancellor’s latest announcement came as tentative signs have begun to emerge that buyers and sellers are adjusting to previous stamp duty changes introduced in December 2014.
“After a year under the new system, which raised rates for properties worth more than £1.1 million, a growing number of vendors have begun to set asking prices that reflect the more subdued level of demand and heightened sensitivity to pricing among buyers.”