Property experts say stamp duty hike will not hinder sales

Marion Dakers
HIGH-END property buyers will not be put off by the looming rise in stamp duty, according to research seen by City A.M.

Though the OECD warned yesterday that the tax places unfair barriers on the housing market for some, 52 per cent of property professionals surveyed by Investec thought the 25 per cent duty hike in April will make no difference to demand at the top end.

The rise in stamp duty from four to five per cent on properties worth £1m or more is due to come into force on 6 April, following plans first revealed by Labour last March.

A third of the 35 estate agents, brokers and developers surveyed said they were more optimistic about the housing market than they were before the credit crunch, while 41 per cent were less optimistic.

In addition, just one respondent though the decision to raise capital gains tax last year had dented sales.

Demand for luxury properties such as the Candy Brothers’ One Hyde Park development has cheered the market in recent months.

Jack Jones of Investec Specialist Private Bank said: “The high-end property market appears to be quite robust to adverse changes in tax.”