Super prime London property hit by Stamp Duty changes

Sales of super prime property in the capital decreased during the final stages of 2015 with critics pointing the finger at the rise in stamp duty implemented in late 2014, writes property specialist Richard Carr.

Higher fees

Richard Carr Central London image

Stamp duty has affected prime property in London

Sales of £10million plus homes in London supposedly fell by a third during the final few months of last year as increased transaction fees put buyers off.

Knight Frank, international real estate firm, saw super prime transactions fall by 16% during the same period that stamp duty increases were implemented. For example, under the increased stamp duty regulations the transaction tax on a £10million property rose to £1.1million from £700,000, which equates to an additional 4% on top of the sale price.

Further changes will be made to the system in Spring when a further three percentage point increase will be put in place for buy to let properties and second homes.

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