Stamp duty effect ‘devastating’
THE £250,000-plus threshold at which Stamp Duty becomes payable at 3 per cent has a “devastating” effect on sales.
Latest research has found 930 per cent more transactions of homes priced between £240,000 and £250,000 than between £250,000 and £260,000.
According to the London Central Portfolio, which commissioned the research from Cass Business School, 13,866 sellers had to reduce prices by at least £10,000.
It adds that 73 per cent of home owners had properties worth between £125,000, when Stamp Duty kicks in at 1 per cent, and £250,000 when it jumps to 3 per cent. The 3 per cent threshold has not been changed since 2000 – when the average house price was £79,242.