Others buying property at over £2 million which will from midnight attract a new higher rate of 7% stamp duty, have also been to try to exchange before the change.
‘We have clients working flat out to exchange before midnight, particularly those with properties held in offshore vehicles,’ said Jonathan Hewlett, head of Savills London.
He pointed out that while the real estate industry had been expecting measures to prevent residential properties being placed incorporate vehicles, the 15% stamp duty tax announced today seems harsh and will ‘doubtless suppress further price inflation in prime central London’.
But he does not think it will stop international buyers coming. ‘But they will pause for thought to put their houses in order. These vehicles are not used simply to avoid stamp duty, there are many reasons why international buyers place property off shore and owners will be spending time with their advisors to fully understand the implications,’ he explained.
‘For domestic buyers of family homes around the £2 million mark, the new 7% stamp duty may trigger some small price reductions around the margins. But for them it is a one off transaction charge that will be balanced by a 5% reduction in the top rate of tax next year,’ he added.
Charlie Bubear, of Savills Chelsea, revealed that his office agreed terms of a deal yesterday where the vendor has today agreed to change his lawyers just so that he can get it exchanged by midnight tonight to avoid the new charges.
‘I am also advising on two other properties where previously I was looking at a guide of £2.1 million but because of the new stamp duty we will look at below £2 million, so £2 million is now the new threshold which will be a key area of pricing,’ he explained.
