New research from property finders, Garrington, the prominent UK buying agent, show that the hike in stamp duty from five per cent to seven per cent for properties over £2million, is dividing the London property market and creating renewed value for money for buyers in the £2million to £3million bracket.
The research appears in the newly-published summer edition of the company’s London Market Review and shows that for the London property market, between the second quarter of 2012 and the same period in 2013, although there has been a 3.6 per cent rise in prices (per square foot) below the £2 million threshold, there has also been a significant 8.4 per cent fall in the £2million to £3million price bracket.
For buyers looking at properties valued at £2million compared with those just under the threshold, the increase in stamp duty means a tax increase of approximately £40,000. However, according to Garrington’s findings, the profound increase in value based on the reduction in price (£ per square foot) on those properties – an average of over £200,000 for £2 to £3million properties – means that the benefits of investing above the threshold are clear.
Nicholas Finn, director of Garrington’s London office said:
“Despite concerns, we have seen a positive effect of the new £2million stamp duty rise, particularly for our clients seeking property between £2million and £3million. Due to the reduced pool of buyers in this bracket, we have been able to help clients find fantastic value for money in prime London areas such as Kensington and Chelsea.”
Further information about Garrington Property Finders is available by calling +44(0) 20 7099 2773, by emailing info(Replace this parenthesis with the @ sign)garrington.co.uk or by visiting www.garrington.co.uk