Residential stamp duty and Million pound homes sales
Less than 0.5% of homes in Britain will be affected by the increase in the stamp duty rate for multi-million pound homes announced in today's budget, according to research by Lloyds TSB. Lloyds TSB estimates that just 0.2% of all home sales in Britain are worth at least two million pounds and therefore subject to the new 7% stamp duty rate. Even in London, multi-million pound sales account for only 1.5% of all sales.
Suren Thiru, Lloyds TSB housing economist, said:
"The impact of the increase in the stamp duty rate for homes sold for over two million pounds on the housing market is likely to be very limited. However, strong demand from wealthy cash rich buyers, as well as limited supply of such properties, is likely to continue to boost the level of activity at this end of the housing market."