Budget Reaction

In reaction to today’s budget Managing Director Karelia Scott-Daniels said, “The 2% increase in stamp duty is unprecedented and a real blow for buyers in prime central London. Property related tax hits London and the South East disproportionately and is therefore unfair.”

“I don’t think it will affect overseas buyers purchasing in prime central London but it will inevitably put downward pressure on the £2m – £2.5m bracket from East to West, such as in Blackheath, Islington, Crouch End, Maida Vale, Richmond et al.”

“This government has been promising to close the tax loophole on the payment of stamp duty since before they were elected, so the 15% stamp duty on property bought in the name of an offshore company is not a surprise, nor is the fact that properties already held this way will be taxed annually hence forth. I am more surprised that it has taken two years for the Chancellor to announce these proposals.”

“It will have little if any effect on the levels of transactions to overseas investors. Time and again, prime central London real estate has held up as a solid investment during periods of global political and economic flux. Whether buyers are purchasing here to park funds in a safe haven, away from the prying eyes of government in their own countries or as a solid long term investment with good capital appreciation, the benefits of buying here far outweigh the new tax burden.”