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London property sales account for nearly half of total stamp duty

Almost half of all revenue from stamp duty across England and Wales comes from property sales in London, according to the latest figures.

Research by property agent Knight Frank shows London make up only 13 per cent of all property sales for Q1 of 2015, but account for 46.9 per cent of total stamp duty revenues, up from 43 per cent last year.

Since the increase in stamp duty, which was introduced last year by Chancellor George Osborne, properties sold for over £1.5m are subject to a top rate of 12 per cent, resulting in lower demand in the London property market.

Homes worth £1m or more contribute 34 per cent of all stamp duty revenue, up from 26 per cent a year ago, according to the report.

Head of London residential research at Knight Frank, Tom Bill, said: “December’s rise in stamp duty appears to have had the single biggest dampening effect on demand.

“In the period between the general election and the summer holidays, buyers in London have taken stock of new market conditions, and appear less inclined to rush into making decisions,”

This was posted in Bdaily's Members' News section by Ellen Forster .