Newspaper article The Evening Standard (London, England)

Price of PS1m-Plus London Homes Slashed; Buyers Go on 'Tax Strike' in Protest at Osborne's Stamp Duty Shake-Up Sales of Trophy Properties Are Hit by Stamp Duty Rise and Shares Jitters

Newspaper article The Evening Standard (London, England)

Price of PS1m-Plus London Homes Slashed; Buyers Go on 'Tax Strike' in Protest at Osborne's Stamp Duty Shake-Up Sales of Trophy Properties Are Hit by Stamp Duty Rise and Shares Jitters

Article excerpt

Byline: Jonathan Prynn and Simon Freeman

LONDON homeowners are being forced to make dramatic price reductions to sell their properties as George Osborne's stamp duty shake-up continues to send shockwaves through the market, the Evening Standard has learned.

Nearly one in five homes on the market for more than PS1 million has had its price cut in the latest evidence of a slow down since the Chancellor's new regime came into force.

Buyers facing large tax bills are "going on strike" and demanding lower asking prices, according to agents, while the stock market meltdown over the summer, triggered by fears about the Chinese economy, has forced some wealthy buyers to pull out. Analysis by the Standard shows that of the 10,182 homes being advertised on the Zoopla property website for PS1 million or more, 1,897, or 18 per cent, have had their prices cut. Above PS2 million, 570 or 16 per cent of the 3,487 homes have taken price reductions.

Frank Speir of buying agency Prime Purchase described the London market at above PS2 million as "at a complete standstill" adding that even the credit crunch had less impact than stamp duty Continued on Page 4 Continued from Page 1 rises of recent years. Latest official figures today showed that prices across the capital inched forward by just 4.2 per cent in the year to August, putting London below the national average for England of 5.6 per cent.

Only in the North-East and the Midlands are prices going up more slowly. During August, prices in London actually fell by PS3,000 to an average of PS522,000. The new regime introduced by Mr Osborne in last December's autumn statement abolished the old "slab" system of stamp duty rates, but increased the burden on almost all homes sold for more than PS937,000.

For a PS2 million property the stamp duty bill went up from PS100,000 under the old system to PS153,750.

Adam Silvester, marketing manager at estate agency Dexters, said the owners of an "absolutely beautiful" fivebedroom Georgian house in Hampton with private mooring, a south facing garden and outdoor pool had only been able to find a buyer this week after dropping the asking price more than 20 per cent from an original PS3. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.