London House Prices: Sales Of Prime Property Crash After George Osborne Hikes Stamp Duty
A recent report released by estate agency Douglas & Gordon expose figures that prove Chancellor George Osborne's stamp duty hike on expensive properties has crashed the top end of the market. Specifically these figures show a 64% drop in transactions for high end homes. The issue is that this kind of inactivity could trickle down the market, meaning that these stamp duty reforms are achieving the complete opposite of what they were originally intended to do.
Ed Mead, executive director of Douglas & Gordon, paints the picture of the issue perfectly – ‘It's like a Chinese lantern or an accordion. If you cut the top of it, the whole thing starts collapsing.’
Mead believes that there is an ongoing battle between buyers and sellers, with the latter demanding discounts on property prices, which dates back to before the election and to those Mansion tax talks.
The International Business Times looks into the issue more closely, which you can read here.