JLL Residential

Property Focus December

JLL Property Focus December 2014

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Focus update:

  • Osborne reveals stamp duty reforms
  • George Osborne has said stamp duty will be cut for 98% of homebuyers in his Autumn Statement. The Chancellor said that from midnight last night the current system, where the amount owed jumps at certain price levels, would be replaced by a graduated rate, working in a similar way to income tax. The new stamp duty rates will only apply to the part of the property price that falls within that band, so there will no longer be a huge jump in stamp duty, for instance, on a property costing £500,001. People currently in the process of purchasing a home could choose which regime to operate under, Mr Osborne said. Under the new rules, no tax will be paid on the first £125,000 of a property, followed by 2% on the portion up to £250,000, 5% on the portion between £250,000 and £925,000, 10% on the next bit up to £1.5m and 12% on everything over that. The Treasury said someone buying a property at the average family home price of £275,000 would save £4,500, while a £2.1m purchase would carry £18,750 more stamp duty compared with the old system. Ed Balls, the shadow chancellor, admitted that the “government is now going to make it fairer” to buy a home. However, he denied that the stamp duty overhaul made his plan to impose an annual mansion tax on high-value properties unnecessary. Instead, Labour will back both measures in a move that would see a big bump in tax from wealthy homeowners, primarily in London and the southeast.

  • Most expensive property sale
    Land Registry data confirmed that a £50m apartment on Princes Gate, London, was the biggest deal of the year in 2014 and cost almost twice as much as the second most expensive property, a £27m terraced home in west London. The apartment is one of 11,115 properties which have sold for more than £1m in 2014. The Princes Gate deal went through in July with the buyer left with a £3.5m stamp duty bill. However, if the house was bought now the tax bill would be just under £6m following the stamp duty change.

In this edition we showcase a selection of new and current property instructions from our London offices, such as:

  • Travers House 
  • Goodman’s Fields, E1 
  • New Capital Quay, Greenwich 
  • River Gardens 
  • Kensington Apartments, E1 
  • The Penthouse Collection, W2