Member Article

Stamp duty changes see demand for London’s million pound mansions tumble

Demand for homes over £1m in prime Central London locations has plunged following the introduction of April’s stamp duty changes, according to figures from online estate agent eMoov.

The figures show sizeable percentage decreases in the demand for luxury London properties right across a number of boroughs, as the 3% stamp duty charge on second homes begins to bite.

The likes of Islington, Belgravia and Chelsea all saw a decline in demand, calculated by the amount of properties sold versus properties available in the area, with a 23% decline compared to March.

According to eMoov, today’s figures represent the lowest figures on record, and follow a race to complete sales in March, before April’s deadline, which temporarily boosted the market.

There were also big declines in year-on-year demand, with the likes of Fulham (-33%), Chelsea (-28%) and Belgravia (-88%) all faring worse than at the same point last year.

Chief Executive Officer at eMoov, Russell Quirk, commented: “It’s now abundantly clear that the brief resurrection of London’s prime central London market witnessed in March, was an artificial skew as many scrambled to complete a sale before April’s stamp duty deadline.

“It seems the extra 3% levy has brought London’s top-end market back to its knees once again and this will inevitably lead to further, sizable reductions in property values across such well-heeled areas.

“Add this stamp duty penalty imposition to the approaching threat of Brexit, current economic woes across global powerhouses such as Russia and the slowdown in the Chinese economy, plus extremely low oil prices that are failing to fill the coffers of Middle Eastern buyers and it makes for a toxic cocktail of PCL doom.

“There will always be demand for such property to an extent, but the jewel in London’s property crown is certainly losing its shine where the majority of buyers are concerned.”