Stamp duty rise: London property market in ‘ meltdown ‘ in just 7 hours-Director of finances online

“There have been fallen Astoria seen across London by several estate agents with company buyers unwilling to pay this absurd 15% tax.”

In London property market started, apparently responding to stamp duty rise as George Osborne announced in yesterday’s budget.

Osborne targeted sector property by introducing a 15% stamp duty tax on homes worth more than £ 2 million, purchased through a company.

He also announced a consultation with an annual tax on certain such owned residential properties should enter into force in April 2013.

The Chancellor also has introduced a new 7% stamp duty on sale of property for residential purposes directly purchased over 2 million pounds. Effectively a £ 140,000 tax bill on a 2 million pound House.

Previously, the higher rate of duty stamp of 5% on all home worth over 1 million pounds.

Ed Mead, Director, Douglas and Gordon, comments on the visible impact of stamp duty increases have already had on the property market:

“It is less than 7 hours ago Chancellor delivered the budget and first-class Central London property market has gone into meltdown. I don’t think any have quite clicked, many of the properties at this price level is bought by a company through personal choice rather than a way to avoid stamp duty taxation. Most property companies buy for development by companies and the extract also.

“There have been fallen Astoria seen across London by several estate agents with company buyers unwilling to pay this absurd 15% tax.  A few buyers have tried to offset this additional costs by decreasing their sales price by as much as 10%, which has caused vendors to pull out of a sale. The consequences of these case-Astoria has caused widespread chaos, with property chains are broken and quotes that have only a few days to complete the fall.

“Why we are shutting the doors of international buyers, which have built in London in what it is spending billions while here faces? The most important source of aggro was avoidance SDLT through use of the overseas company special vehicles, but this budget does not address as it still can go. Instead, it has been used a sledgehammer to crack a nut in the form of UK company purchases used in SDLT risk mitigation schemes. They could, but at what price. “

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