The Chiswick property market is seeing a flurry of interest in flats as investors look to avoid a forthcoming rise in stamp duty. There is some concern of a sharp fall in demand once the higher rates come into effect in April, as reported in Chiswick's local news website
ChiswickW4.com.
The latest figures from the Land Registry show that property prices in Chiswick rose by 7.3% in 2015 with the average remaining close to the million pound mark at £962,268.
Flat prices rose by only 3.2% over the same period but local agents report brisk activity in this sector of the market since the New Year due to the planned increase in stamp duty for the sale of a second property. Buy-to-let investors will be required to pay 3% more in stamp duty charges than residential buyers looking to purchase the same home.
Christian Harper of
Harper Finn said that at first it appears reasonable that anyone who can afford to buy a second property should be taxed more. However, he points out that about 50% of flats in Chiswick are owned by people looking to provide themselves with a pension by investing in a flat.
"If the cost of buying these flats in Chiswick becomes too high to tolerate I believe that the overseas market will begin to look more attractive and demand will fall off a cliff. If this happens, yes our children could buy a property at a much cheaper price, however 100% of people who currently own a property would be affected.
"Many people use the equity in their current property to fund spending on a new car, or kitchen extension that they rely on property prices to remain strong.
Blunt instrument
"I support the efforts by government to curb the UK’s desire to buy more and more property to make money, however I think that simply taxing such a small section of the market is a blunt instrument and is bound to have a negative affect.
"George Osborne himself stated that raising income tax would reduce the amount of tax receipts so why does he feel that it will work in the property market?"
The average Chiswick property sale price dipped below the million pound mark in the last three months of the year and sales volumes also fell with houses seeing a bigger drop off than flats. The top priced home sold during the last quarter of 2015 was on Bedford Road in Bedford Park.
The Grade II listed 5 bedroom house changed hands for £3,317,000. However terraced homes and flats have proven to be the most resilient to change, and show a fall of less than 1 % in the last quarter, despite overall property sales being down by nearly 20%.
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