Canary Wharf is one of London’s main business districts, located in Docklands just a few miles east of the City. Over the past few years in particular the area has become one of the capital’s most sought-after places to live. Investors, private buyers and tenants are drawn by both the area’s proximity to one of the world’s most visually impressive financial centres and the diverse range of property types.
Despite the area’s popularity, activity in the Canary Wharf residential sales market has slowed this year, as it has across much of London: the number of transactions in the year to May 2016 was 6.9% lower than in the corresponding period in 20151. This reduction can at least be partially blamed on the 3% stamp duty surcharge that second-home owners and buy-to-let investors have faced since its introduction in April. Those buyers have also been seeking price reductions to offset the increased tax they face having to pay. Average sold prices in Canary Wharf in the year to May 2016 were 2.9% higher than the average for the same period in 2015. Furthermore, average prices are now 28.9% above their pre-global recession peak in 2007.