Overall, growth in the London market remained robust, albeit with a slight moderation in Q3. Nationwide recorded annual growth of 7.1%, down from the 9.9% recorded in Q2. This growth was driven by strong activity in the first quarter of 2016, as investors clambered to avoid paying an additional 3% Stamp Duty on their purchases. Since then, activity in Greater London has slowed with sales volumes down 13% overall in the first half of 2016 compared with the same period last year.
Some four months have now passed since the UK voted to leave the European Union, and the industry is closely monitoring its impact. However, the distortionary effect of the new Stamp Duty rules means that there will still be some time before we can draw any conclusions.
CBRE East London did experience a slight fall in activity in the third quarter, as the impact of Stamp Duty and post-referendum uncertainty continued to feed through the market. In addition, the third quarter is typically quieter as people enjoy their summer breaks. However, while activity declined, it still remained robust.