You are here: Home - Uncategorized -

Stamp Duty rise ‘will have little impact’

Written by:

Stamp Duty has risen to 5% for residential properties valued at more than £1m from today, but the increase will not seriously affect the housing market, experts have said.

According to mortgage brokerage First Action Finance, the change will affect just 1% of housing transactions.

In addition to the new 5% Stamp Duty rate, the government has pledged to clampdown on avoidance of the tax by buyers of high value properties.

Jonathan Cornell, communications director for First Action Finance, said that the Stamp Duty change is a “political move” rather than one to help the financial sector.

He said: “I can’t see Stamp Duty doing anything other than raise money for the government and, however much it does raise, it will still only be a relatively small amount.”

Yet, Mark Alexander, managing director at the Money Centre, said that the the 5% rate will create a pinch point in the market where buyers begin to see more properties priced at just under £1m.

He added: “At the same time, if there is a lot of demand for property than the seller is going to be in a good position and less likely to want to reduce the price.

“But overall, I think the Stamp Duty hike will have minimal impact on homebuyers, particularly in London and the South East.”

Email Mortgages chief executive Michael White added that that the change will not impact the £1m-plus property market significantly through 2011.

He said: “I don’t think Stamp Duty will make much difference now because there is a shortage of quality supply to meet pent-up demand.

“For people buying at that level it isn’t much more than the price of a new kitchen.”

Related Posts


Tag Box

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

ISAs: your back-to-basics guide for 2018/19

Here’s everything you need to know to make the most of your unused ISA allowance ahead of the 5 April deadli...

A guide to Sharia savings accounts

A number of Sharia savings products have upped their game in recent months, beating more familiar competitors ...

Five ways to get on the property ladder without the Bank of Mum and Dad

A report suggests the Bank of Mum and Dad is running low on funds. Fortunately, there are other options for st...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week

Read previous post:
Downbeat BCC report pressures Bank ahead of rate call

The first-quarter rebound in the UK economy was weaker than expected, a survey suggests, adding to a growing consensus the...