London Housing Market News: High end sales 'will not be affected by stamp duty rise'
Fri, 21 Jan 2011 17:09:42 +0000High end property sales and rentals are not likely to be impacted by tax increases, research from Investec Specialist Private Bank has suggested.
The rise in stamp duty from four per cent to five per cent on properties worth more than £1 million comes into effect on April 6th this year, but the bank's study reveals 52 per cent of investors believe this will not dent prices.
Some 45 per cent of London property development organisations, such as estate agents and mortgage brokers, feel the rise may result in slight falls in house prices, but no one foresees sharp drops as a result of the tax hike.
Jacks Jones of Investec commented: "The high end property market appears to be quite robust to adverse changes in tax."
This is because overseas and domestic buyers are still pursuing residential property investments in London and other parts of the UK.
"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," Mr Jones added.
21 Jan 2011
London property for sale, London house price & property sales news, reports, surveys, trends
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