Property prices in Prime Central London have fallen by an average of 6.6 per cent over the past year, and leading property bodies seem to think that recent changes to Stamp Duty Land Tax (SDLT) are weighing heavily on values.
In a recent market report, estate agent Knight Frank has noted that prices in certain parts of London have fallen by almost 15 per cent since higher rates of SDLT were introduced by former Chancellor George Osborne.
According to the agent, property prices in Bayswater have fallen by 14.7 per cent over the period studied, while values in Chelsea have slumped by 13.3 per cent.
Knight Frank claims that values have been hit as a direct result of “higher rates of Stamp Duty”, which now see properties valued at more than £937,500 incur significantly higher rates upon purchase.
The impact of SDLT on the London market has also been criticised by fellow estate agent Savills, which has said that other recent changes to the tax, such as last year’s introduction of a three per cent Stamp Duty surcharge payable upon purchase of second homes, have been detrimental to the London market.
However, despite these criticisms, Knight Frank’s latest market report for London suggests that “signs of stability have [recently] emerged against an uncertain political backdrop”.
Last month, property bodies such as Savills, Haart and Countrywide all suggested that the triggering of Article 50 would bring greater certainty to Britain – and that property prices across the capital would be boosted as a result.