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‘Prime market won’t be hit by stamp duty rise’

But, according to Alex Thompson, director at Winkworth Notting Hill, buyers currently in negotiation will be looking to complete sales before the rise takes effect.

"The impending increase in stamp duty has generated impetus on the demand side and we are currently negotiating on four properties priced between £2-3 million, all with buyers looking to complete before 5 April. In these cases, the new stamp duty levy would incur an additional £20,000 to £30,000 in taxes."

Adrian Philpott, Sales Manager, Winkworth West End, said the additional duty at these price levels was unlikely to deter buyers: "Although buyers have occasionally mentioned the stamp duty increase, we don’t expect it to be a deciding factor for many of them of this calibre.

"The increase in duty may have a marginal effect around the £1million mark, but once you enter the £2million plus market, the extra £20,000 or so in tax is not the deciding factor. Currently, there is a shortage of quality stock on the market, so if someone finds a property they really like, they will buy it a price they’re prepared to pay regardless of the additional tax."

On the supply side it is unlikely there will be any significant increase of property to the market although, Thompson said, there were some sellers who would be looking to beat the stamp duty increase.

"We have recently taken on a property which the vendor had initially planned to market in June, and have brought forward with the aim of achieving a sale before 6 April," he said.

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  1. Be very cautious of any adviser who suggests a purchase is completed before 6th April to avoid the extra 1% and the seller remains in the property as a tenant until convenient for them to move – mortgage fraud may be committed.