Response to the Autumn Statement
Wed 03 Dec 2014
Peter Rollings, CEO of Marsh & Parsons, comments:"This Stamp Duty shake-up is long overdue, and the abolition of the archaic slab system will take the sting out of the tail for thousands of buyers on the lower rungs of the ladder. The new graduated system should help brighten the UK housing recovery in regions outside of London, where property prices are still battling back to pre-recession levels but it will add to the weight of the tax burden shouldered by those buying more expensive homes. In Prime parts of London, where 56% of property is worth 1million or more, this will impact a significant proportion of ordinary working families.
"But any additional strain on the top tiers of the housing market will be absorbed, and the natural rhythm of the property market wont be disrupted. Buyers investing in Prime London property are accustomed to having to pay a higher price than elsewhere across the country, but the unparalleled returns and capital growth on offer more than make it worthwhile, so demand wont be quashed. London property taxes have historically been cheaper compared to other world cities, so this overhaul brings it into line with rival global centres of investment and although one-off purchase costs are always a bitter pill to swallow, it wont deter people from snapping up their dream home in a desirable location. Buyers will soon adjust and it will simply become the norm."