propertytalk Live! - 'Prime market won't be hit by stamp duty rise'

propertytalk Live! - 'Prime market won't be hit by stamp duty rise'

The Government's 1% increase in stamp duty - from 4% to 5% - on properties selling at £1million and above takes effect from next month.

It is widely expected that this increase is unlikely to affect the prime market.

But, according to Alex Thompson, director at Winkworth Notting Hill, buyers currently in negotiation will be looking to complete sales before the rise takes effect.

"The impending increase in stamp duty has generated impetus on the demand side and we are currently negotiating on four properties priced between £2-3 million, all with buyers looking to complete before 5 April. In these cases, the new stamp duty levy would incur an additional £20,000 to £30,000 in taxes."

Adrian Philpott, Sales Manager, Winkworth West End, said the additional duty at these price levels was unlikely to deter buyers: "Although buyers have occasionally mentioned the stamp duty increase, we don't expect it to be a deciding factor for many of them of this calibre.