The decision by the UK government to increase property stamp duty on certain properties has had some impacts sales but a cautious market prevails across the board, according to real estate consultants.
Last month's increase of 2% in stamp duty above the £2 million mark resulted in some frantic price reductions in order to attract a buyer or secure a deal.
In the country, buying agents, Middleton Advisors witnessed a property available for two months at £2.25 million being reduced below the higher rate threshold on the 29 March.
'The 2% rise in SDLT above £2 million will have a more significant impact on property valued at £2 to £3 million than more expensive property. You will see the pricing change at this level to compensate for the increase,' said Tom Hudson, managing partner at Middleton.
'At a higher level the purchaser is better equipped to soak up the change. I think once the dust settles, it will simply bring the UK property tax levels in line with other countries,' he added.
Independent property consultants, Rawlings Property Consulting, also saw the impact of the stamp duty rise and hurried through an exchange of contracts on the eve of the budget with a property in First Street, London SW3, achieving the full asking price of £2.6 million.
'The London property market continues to be struck by a lack of stock dictated by a fear in the job market and caution in the financial sector making borrowing difficult. So when a good quality property priced sensibly comes to the market, the serious among the few buyers are swooping,' explained managing director, Juliet Rawlings.
Rawlings has exchanged on four properties in as many weeks. A top floor flat with views on the Old Brompton Road went under offer within four hours after just three viewings, including Italian, German and English nationalities, eventually selling to the Italians for the full asking price of £1.35 million
Also a modern mews house in W2 and a penthouse with roof terrace in Battersea SW11 exchanged at the full asking price within weeks of each other.
'The market is still very difficult at the £850,000 to £2 million level. If we don't get that shifting, we won't get the move ability higher up the scale. Currently the market is dictated by caution and with current low interest rates people can afford to stay put,' added Rawlings.
SOURCE Propertywire
