5% stamp duty looms – but little impact on prices expected
This was announced by the Chancellor in the 2010 budget so as to fund a temporary scrappage of the tax for first-time buyers.
However, research from Investec Specialist Private Bank (‘Investec’), who recently surveyed and interviewed estate agents, property developers and mortgage brokers specialising in this £1m plus market, reveals that 52% expect this to have no impact on prices, 45% expect prices to fall only slightly as a result, and none believe there will be a sharp fall.
Jack Jones of Investec comments that, “The high-end property market appears to be quite robust to adverse changes in tax. This is probably because the market is still seen as being very attractive, with opportunities for both British and non UK buyers. The sector is very different to any other residential property market, and this is demonstrated in its recent strong show of resilience. Sales are still strong and demand for million pound plus properties although down, remains high.”