London's richest people went on a property buying frenzy just before April
Confessions of a Shopaholic the movie
The group, which published a trading update for the quarter ending March 31, said that total group revenue for the quarter was at £38.4 million, up 16.2% compared with the first quarter last year.
"A significant increase in transactions completing before the introduction in April of the 3% stamp duty surcharge on buy-to-let investments and second homes," helped boost the numbers, according to Foxtons.
Stamp duty is a tax placed on buyers when they purchase a property in the UK. It is payable on completion of the property.
So this works out to an extra £93,750 if you're buying a property at £1.5 million, according to the government's stamp duty tax calculator. However, if you're buying a property for £5 million, you'll be forking out £513,750 just in stamp duty fees.
Secondly, if you own more than one property, a 3% stamp duty is applied. The new fee came into force in April and is applicable to buy-to-let investors and those who are buying a second home. This 3% fee is on top of the extra cost of a new purchase in April.
So people rushed out to buy before being slapped with the extra 3% tax. The average house price in London is over £500,000, according to the ONS, so those buying are likely to be relatively wealthy.
HMRC
This follows directly in line with other estate agents' predictions.
This week, Countrywide, the UK's largest estate agency group, warned of a coming chill in the property market.
In a trading update on Tuesday, the group, which owns brands like Bairstow Eves and Hamptons International, says it has had a bumper start to the year as buyers rushed to snap up buy-to-let properties and second homes ahead of the new 3% stamp duty surcharge that came into effect on 1 April. House exchanges in the first quarter were up 30% on last year.
But Countrywide warned: "We expect the housing market to slow in the second quarter post the surge in buy-to-let activity in the first quarter and reflecting challenges from the political and economic uncertainty in the lead up to the EU referendum in June."
- People intolerant of other religions are more likely to reject science, study asserts
- 7 reasons why cucumber can be your summer weight loss friend
- 8 refreshing kulfis you must try this summer
- Adani Enterprises Q4 net falls 37%; incubating businesses show strong momentum
- India, New Zealand hold Joint Trade Committee meeting to deepen relations
- Nothing Phone (2a) blue edition launched
- JNK India IPO allotment date
- JioCinema New Plans
- Realme Narzo 70 Launched
- Apple Let Loose event
- Elon Musk Apology
- RIL cash flows
- Charlie Munger
- Feedbank IPO allotment
- Tata IPO allotment
- Most generous retirement plans
- Broadcom lays off
- Cibil Score vs Cibil Report
- Birla and Bajaj in top Richest
- Nestle Sept 2023 report
- India Equity Market