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.
There are currently around 45,0001 homes in Britain estimated to be worth at least two million pounds.
As a consequence of the increase in the stamp duty rate for homes purchased for more than two million pounds from 5% to 7%, the average stamp duty bill for such homes will rise by 40%.
The number of property sales worth at least two million pounds has risen by 75% over the past five years. There were 739 million pound property sales in Great Britain in the first half of 2011. This is the 75% higher than in the same period in 2006 and 29% higher than in the same period in 2010.
More than three-quarters of multi-million pound sales are in London
78% of all two million pound plus sales are in London. More than half (57%) of these transactions were in Kensington & Chelsea and Westminster. By postal district, Chelsea recorded the largest number of sales of homes worth at least two million pounds (50). The number of five million pound plus properties sales increased by 48% to 77 in the first half of 2011 from 52 in the same period in 2010. Kensington & Chelsea, Westminster and Camden accounted for 86% of all such 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.”