The sale of expensive London homes has collapsed by two thirds following the overhaul of stamp duty, new figures have revealed. Following the recent stamp duty reforms, London property sales fell by 64% in the last nine months as the higher tax rates affect properties selling for more than £2m. The average price of a home sold to foreign buyers dropped from £298,700 in January 2016 to £275,600 this month, according to data compiled by estate agents Savills. Ed Mead, Director of Douglas & Gordon states that the problem with this is that "when prices fall sellers do not put their properties on the market, causing paralysis in the market". Although the new stamp duty changes affect those buying a multi-million property, it benefits 98% of people who are paying tax on a new home.
Following the recent stamp duty reforms, London property sales fell by 64% in the last nine months as the higher tax rates affect properties selling for more than £2m. The average price of a home sold to foreign buyers dropped from £298,700 in January 2016 to £275,600 this month, according to data compiled by estate agents Savills. Ed Mead, Director of Douglas & Gordon states that the problem with this is that "when prices fall sellers do not put their properties on the market, causing paralysis in the market". Although the new stamp duty changes affect those buying a multi-million property, it benefits 98% of people who are paying tax on a new home.