We’ve had an extraordinary few months at Mountgrange Heritage with some truly outstanding sale prices and unprecedented levels of new tenancies being agreed. In our last newsletter we made reference to the sense of concern to the impending emergency budget and the potential increase in Capital Gains Tax. In fact, as we predicted, the impact of the emergency budget was close to zero. CGT has increased although not to 40% or 50% as was feared, instead it sits at a more comfortable 28%.
However, 2011 will bring an increase in transaction costs to the property market, with VAT increasing to 20% and Stamp Duty increasing to 5% for sales over one million pounds. The shift in Stamp Duty could spark a flurry of transactions before the change comes in to effect; so if you own a property with a value between one and three million this could be an excellent time to sell.
In spite of economic considerations the love affair with central London residential property is as strong as ever. The strength-in-depth we experience is primarily delivered by buyers from every corner of the globe and all walks of life. We are just as comfortable working with bankers or artists as we are with nationals or internationals – after all, it’s this tapestry of people which makes our Village such a special place to reside.
Director – Head of Sales, Mountgrange Heritage
Posted: 4 October 2010