Mortgage News
Wealthier London homeowners slash sales prices after Stamp Duty reform
Elite homeowners in central London began cutting offer prices following the Stamp Duty reforms in the Autumn Statement this week, with estate agents warning the move could decimate the high-net worth market in the capital.
According to The Telegraph, vendors with properties worth more than £1m are already cutting or readying to reduce asking prices after the Chancellor recalibrated the previous slab structure to reweight the burden towards the top end of the market.
The changes were effective from midnight on Wednesday, which left many estate agents predicting the high-net worth market in London could grind to a halt.
One predicted the £3m to £10m bracket would be most heavily affected, with another agent predicting sellers in these markets would be forced to drop prices 10%.
The spectre of an additional Mansion Tax still remains, with Labour’s shadow leader Ed Miliband reportedly intent on bringing in the property tax on top of the Stamp Duty changes.
A stampede of buyers reportedly tried to push through transactions before the early hours of 4 December to avoid the high tax band tiers, although those who have already exchanged can choose which regime to pay under.
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The Chancelor abolished the slab nature of the Stamp Duty Land Tax at midnight on 3 December in the Autumn Statement this week.
Meanwhile, London-based mortgage adviser, Private Finance created its own Stamp Duty calculator HERE, which went live yesterday night.