Within London’s 81% share:
40% in Kensington & Chelsea
20% in City of Westminster (which together cover large part of prime central London so just under ½ of all homes worth £2 million or more are in Prime Central London)
13% in Camden
4% in Barnet
4% in Richmond
Liam Bailey, head of research at Knight Frank, said: “Those who own a home valued in this bracket have already paid substantially more stamp duty than other segments of the market.
“This is especially the case if they have bought their home since April last year, when stamp duty was raised from 4% to 5%, increasing the bill for the purchase of a £2 million home by £20,000 to £100,000.
"The latest official figures, which do not include last year’s substantial uplift in stamp duty, suggest that those buying homes worth £2 million and above paid around 17 per cent of the total stamp duty tax revenue raised from residential transactions in 2010/11, despite making up just 0.5 per cent of total transactions.
“In light of this, to ask all of these homeowners to pay an effective annual “service charge” to the Treasury seems like a penalty. This will certainly feel like the case for those living in high value homes who have modest levels of annual income.”
“The issue of valuation is also a thorny one – to suggest that the value of properties has risen across the country in a uniform manner is thoroughly misleading. The last few years has seen the rise of local markets that have performed very differently across counties, let alone regions. And this ignores the fact that properties in this price bracket can fluctuate; so regular reviews – and all the expense that is attached with that process – would have to be established.
“As it stands, this proposal very much looks like being an additional tax on property in London and the South East.”
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