London’s prime property market is back to business and seemingly unaffected by the looming end of a significant transfer tax break, according to data released Wednesday in the U.K. by Knight Frank.
On June 30, the stamp duty holiday—a tax-saving measure introduced last summer—went from scrapping the transfer tax on the first £500,000 (US$689,175) of a home sale to the first £250,000, and it will revert back to the typical £125,000 at the end of September when the holiday ends entirely.
In July—the immediate aftermath of the adjustment—the number of sales across the pricey heart of the city dropped noticeably from the same time in 2019, with buyers no longer able to secure the maximum savings.
But by August the declines had narrowed, particularly at the higher end, demonstrating persistent demand for luxury homes.
The number of sales in prime central London priced below £2 million in July was 30% below the same month in 2019. In August, the decline in that price segment had narrowed to 5%, the property consultant and estate agency said.
For sales of homes priced above £2 million, sales were down by 5% in July compared to 2019 and dipped 3% in August.
For higher-value properties, “the stamp duty holiday was an opportunity to save £15,000 but the urgency around the deadline was less acute,” the report said.
Article Source: Mansion Global