The knock on effect of the December Budget change in top tier SDLT (stamp duty land tax to 12% over £1.2M) is beginning to be more visible.
Total volume of Mayfair sales for residential property in the 1st half of 2015 was down by a third on 2014 and half of 2013.
However sales values remain strong due to lack of supply – potential vendors have withdrawn nearly a quarter of the available stock – as the costs of selling and subsequently buying alternative property appear prohibitive.
Perhaps the Chancellor should be applauded for his December actions (all be it with a strong arm lock from the Liberal Democrats) as the prime central London market was perceived to be overheating. However as a Government now keen to balance the budget, I would suggest that lowering the SDLT rate would actually bring in more revenues to the Exchequer.
We now await the “emergency Budget” on Wednesday 8th July.
You will have to await my next update until I have digested the contents of Mr Osborne’s new offering.