London Property Market Boosted By Stamp Duty Changes
Finefair believes the 2014 Autumn Statement benefits both buyers and sellers in the capital city
Chancellor George Osborne's Autumn Statement has delivered an unexpected boost to the already buoyant London property market. The end of the 'slab system' in respect of Stamp Duty bands means that the majority of home buyers will now pay a fairer - and lower - tax on their investment. Properties bought and sold for less than £1,000,000 will now be charged Stamp Duty at a lower rate due to the new calculation mechanism. Finefair, London's leading property experts, are anticipating that this move will aid both sellers and buyers.
The average London property price is £510,000. To use that average price as an example, under the new Stamp Duty calculations the amount payable in regards of this tax is £15,500. When compared to the amount of £20,400, which would have been applicable prior to December 4 2014, the benefit of the new system is clear as it represents a £4,900 reduction in costs. The view at Finefair is that this reduction will help sellers find buyers with greater ease, and by the same margin buyers will be in a more powerful position to invest in properties within their budget. As a further example, properties purchased for £275,000 now have a Stamp Duty applicable which is approximately £4,500 lower, showing the far reaching beneficial consequences for the market in this move.
Although the London property market has experienced a prolonged period of growth, Finefair believes the Stamp Duty changes have come in with perfect timing. Speaking on behalf of the company, Jay commented how this change will bring "realistic sustainability" to the market. The lower Stamp Duty rates mean the market has received an important stimulation boost that benefits both buyers and sellers by the same margin. The unobtrusive nature of it has been broadly welcomed, in particular as it does not interfere with or undermine market related prices for London property.
Whereas the changes to Stamp Duty have benefits across the whole of the United Kingdom, the impact on the London market is of great significance. Due to its international prominence, the London property market is, rather fairly, used as a guide or gauge in terms of understanding the state of the nation's economic situation. At this stage, words like "healthy" and "vibrant" are used to describe the London property market. Lower taxation rates for the majority of properties in the market means that these descriptions will be applied for an extended period of time.
Over the course of the 21st Century Finefair have become the dominant name in all London property matters. From expert property management and guaranteed rent agreements through to sales and investment portfolio properties, the company has become the most trusted name in the capital city. With the changes made in the Autumn Statement coming into immediate effect, those involved in the London property market know that they will safely draw the best beneficial position from them by using the expert services of Finefair.
Finefair are London's leading property experts
Dec 04, 2014