The change in Stamp duty has led to stagnation in the property market in the UK is more expensive than £1.5 million.

The market prices of residential property in the UK in the price range of more expensive £1.5 million remain unchanged and seem to be ready, for the first time in two years, to go down.

After two years of continuous growth in property prices luxury by 36% over two years from 2012 to 2014, in 2015 the market has a significant impact of the new differentiated scale of Stamp duty that was introduced in December 2014. The stagnation in the real estate markets in the sector of expensive real estate is in the real estate market of London and in the regions where many objects more than £1.5 million have ceased to be attractive to pokupateley.

After the introduction of the new scale of Stamp duty for properties priced from £925001 up to £1.5 million , the buyer will need to pay 10% more Stamp duty. And for buyers of real estate more expensive than the £1.5 million increase in Stamp duty will be 12%.

One of the main problems in the property market of the UK is ageing homeowners. Banks are reluctant to give mortgages to people after 40, even if they have already one house in the property.

One of the measures offered by the government to revive the market in this sector is to amend the “inheritance tax”, which should encourage older people – sellers to reduce prices But it is obvious that these measures will not be enough and it is necessary, first, to change the rules of mortgage lending, in which people older than 40 years there would be a chance to be active borrowers in the mortgage market.

It is not excluded that it will be necessary to revise the scale of Stamp duty in its upper part to the stagnation in the housing market did not exert an inhibitory effect for the entire housing market.

More than a third of residential property in the UK worth more than £1.5 million to Mitigate the scale of Stamp duty, after the tightening is already half a year can not recover the market would mean a significant recovery as local buyers are buying real estate for themselves and foreign investors, for which the UK real estate has always been attractive also because of flexible tax policy, which preached the United Kingdom.

® Alice Morgan 27.07.2015.

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