The Prime London market accounts for 12% of UK stamp duty receipts.
Nearly £ 369 million paid for stamp duty.
Prime London buyers paid 12% of UK stamp duty tax receipts across England in 2020 despite accounting for 0.1% of transactions, according to research by Enness Global Mortgages.
Around £ 2.9 billion in stamp duty was paid across England, of which £ 368.6 million were for purchases over £ 3 million in London.
For England as a whole, there was a saving of £ 1.2 billion due to stamp duty holidays, while for major purchases in England £ 6.1 million was saved due to tax relief.
“The market is in a great moment.”
Islay Robinson, CEO of Enness Global Mortgages, said: “While stamp duty is often seen as a financial barrier to purchase for the average homeowner, the sums paid through the main market are much more substantial.”
“However, the stamp duty is only one piece of the puzzle when buying a property in the UK. Any negotiated discounts, potential to add value, financial costs, and monetary considerations must all be weighed to determine the true value of a transaction. Looking at the stamp duty in isolation will not provide an accurate indicator of the additional costs incurred when purchasing.”
“Of course, those who transact at the higher end are much better placed to bear these costs, and therefore a saving in stamp duty has not been a determining factor with respect to transactions, nor has it caused panic is completed. I have seen in the regular market.”
“As a result, the core market arguably is doing better and we’ve seen a quality over quantity focus continue to improve market health at higher price thresholds as confidence returns after a year of pandemic uncertainty.”
At the end of the month, there will be a 2% stamp duty surcharge on property purchases by foreign residents, who make up a significant proportion of the top buyers.
Robinson added: “Of course the introduction of an additional 2% stamp duty for foreign buyers will not do much to help this health recovery as high-end home buyers from outside the UK they have an average cost of half a million pounds that are owed only in stamp duty until April.
“That being said, a top-notch London home remains a must-have in any portfolio of notable international properties and therefore this increase will be seen as a small price to pay for the serious investor.”
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