London, United Kingdom, (27th March, 2012) – Winkworth, the estate agency group, comment on chancellor George Osbourne’s recent announcement that properties sold for over £2million will be subject to a stamp duty charge of 7%, an increase of 2%.
Mr Osbourne also confirmed that properties over the £2million mark bought through a company would be subject to a 15% charge. The Chancellor reported that the people who are buying the most expensive houses should contribute more to the stamp duty tax, as part of the government’s efforts to put an end to people avoiding the tax.
According to The Land Registry, in November 2011 there were 121 homes sold for more than £2million in England and Wales. These sales accounted for just 0.2% of the homes sold in the month. Of these homes, 98 of the properties were in London, which equates to 80.1%.
Dominic Agace, CEO of Winkworth PLC, responds to the Chancellor’s announcement:
“According to the Rightmove portal, there are around 2,000 properties currently for sale at the £2million+ mark. Given this relatively low volume, I question whether raising the Stamp Duty on properties at this level will have any notable impact when it comes to raising funds – especially when there is so much leakage in the system, with property transactions at this level often going via offshore banks.
“Despite the economic climate, property transactions at the £2million+ level have been incredibly stable in the Capital. I believe raising Stamp Duty on these properties will simply serve to lower transactions, pricing out families looking to upsize and leaving only the investors and super-rich foreign buyers who will hold on to properties long-term. The end result will be a stagnant market and higher prices. Surely, this is counter-productive?”
For more information on Winkworth’s services, please visit http://www.winkworth.co.uk or call 020 7355 0220.
Winkworth is a leading franchisor of residential real estate agencies and is admitted to trading on the AIM Market of the London Stock Exchange.
Established in Mayfair in 1835, Winkworth has a pre-eminent position in the mid to upper segments of the central London residential sales and lettings markets. Winkworth has in excess of 90 offices, with 60 in London alone.
The franchise model allows entrepreneurial real estate professionals to provide the highest standards of service under the banner of a well-respected brand name and to benefit from the support and promotion that Winkworth offers. Franchisees deliver in depth local knowledge and a highly personalised service to their clients.
For further information, please visit www.winkworthplc.com or www.winkworth.co.uk.
M Winkworth Plc
Tel: 020 7355 0220