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Londoners hit by stamp duty changes

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03/08/2015
Almost half of all stamp duty levied in England and Wales now comes from properties located in London, data has shown.

Research by property firm Knight Frank found that London accounted for 46.9% of all stamp duty paid in the first three months of the year.

This is despite just 13% of all transactions taking place in the capital.

Changes to the stamp duty system mean properties sold for more than £1.5m are subject to a 12% rate of tax. With many of these homes located in London, tax receipts from the capital have increased.

A year ago London accounted for 43% of the total stamp duty revenue, Knight Frank said.

In total, homes with £1m or above account for 34% of all stamp duty revenue. This is higher than the 26% rate recorded a year ago.

Tom Bill, head of London residential research at Knight Frank, said the increased tax had caused the number of high value property transactions to fall.

“December’s rise in stamp duty appears to have had the single biggest dampening effect on demand,” he said.

“In the period between the general election and the summer holidays, buyers in London have taken stock of new market conditions, and appear less inclined to rush into making decisions.”

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