Stamp duty tax increases to 5%

From 6 April 2011, those buying properties worth £1 million or more will see the amount they pay in stamp duty rise from 4% to 5%, but research from Investec among estate agents, property developers and mortgage brokers specialising in this market reveals that 52% expect this to have no impact on prices. Some 45% expect prices to fall slightly as a result of this, but none of those interviewed believe there will be a sharp fall as a result of this rise in stamp duty.

Jack Jones of Investec said, “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.”

To put the stamp duty rise into context, if you fancy buying that £6.75 million flat at One Hyde Park, the stamp duty alone will cost you almost £340,000!