Adrian Black delivers critical property market insights and the influences, behaviour and money driving them.
As we predicted the tax take rates on London property is increasing and I also expect it will increase further - also the tax take from non-doms is increasing.
A 50% hike in the Annual Tax on Enveloped Dwellings was an easy target and one we expected as we have signalled before.
Stamp duty rises on homes over roughly £1m are significant and accelerate as values increase to a new peak marginal rate of 12%. It would not surprise me to see this raised further over time.
These changes, combined with the likely capital gains tax changes applying to non-UK residents to be introduced in April 2015, will make buying and living in central London prime property more expensive and will have a clear additional dampening effect on demand.