Almost half of all stamp duty revenue across England and Wales is collected from property sales in London, according to data showing the impact of last year’s rise in rates for the most expensive homes.
Research by estate agent Knight Frank shows London accounted for just 13 per cent of all property transactions for the first three months of 2015, but garnered 46.9 per cent of total stamp duty revenues.
Under new rules, properties sold for over £1.5m are subject to a top rate of 12 per cent, which has contributed to lower demand in the London housing market.
Head of London residential research at Knight Frank, Tom Bill, said: “December’s rise in stamp duty appears to have had the single biggest dampening effect on demand.”
“In the period between the general election and the summer holidays, buyers in London have taken stock of new market conditions, and appear less inclined to rush into making decisions,” Bill said.
The data also shows that homes worth £1m or more contribute 34 per cent of all stamp duty revenue, up from 26 per cent a year ago.
A year ago, London sales accounted for 43 per cent of total revenue. The new top rate has pushed up the proportion of revenue taken in London as there are disproportionately more of the most expensive properties in the Capital.