Local Insights

9 December 2014

The Chancellor's Autumn Statement

On paper, with supposedly 98% of transactions being the beneficiaries of the Chancellor’s changes, we should all be dancing in the streets. Sadly, for those of us operating in central London, this is not the case.

This morning I read that many of the 98% vendors who will benefit from the changes will be looking, with the savings the purchaser will be making, to be more bullish on their expectations for the sale of their properties. Sadly for my vendors, the opposite will be the case.

On two specific properties that I have on my books the difference overnight to the potential SDLT payable by the purchaser is £640,000 and £900,000! That is just the difference, not the total amount! As one can imagine this has not been well received.

Sadly, for vendors in central London, they will have to consider lowering their expectations rather than raising them.  

Coupled with the upcoming election in 2015 I envisage transaction levels over the next 6 months being lower still.

Below is a table outlining the price brackets:

Purchase price   of property

Rate of SDLT

£0 - £125,000

0%

£125,001 - £250,000

2%

£250,001 - £925,000

5%

£925,001 - £1.5 million

10%

Over £1.5 million

12%

Find out about the area

Seamus Wylie
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Seamus Wylie

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