Property valuation in London is driven by the size and location of the property. For example, a two-bedroom semi-detached house outside zone 1 might cost around 800,000 pounds while a one-bedroom studio flat might cost around 300,000 pounds. London properties are typically valued on potential rental income and capital gains profits which can be an expensive proposition. This expensive nature of real estate is driven not just by prices but also because buildings draw high rates of tax both from tenants and sellers. The higher value properties typically get residential rates while commercial locations get a rate that varies lower to encourage commerce within the city. Property Taxation in London has introduced thirty years ago when revenue could no longer keep up with demand for public services such as schools and
It is possible to estimate the market value of a property in London using an “agreed sale price” (if there has been one). That’s because property valuation in London already entails various calculations that approximate its approximate, long-term value. For example, land registry expressions are often used for this purpose.