The prime property pockets where stamp duty hits £1.6m, even with a stamp duty holiday

July 15, 2020

The latest research from high-net-worth mortgage broker, Enness Global, has revealed that in some parts of the high-end London market homebuyers are still looking at a stamp duty bill of £1.6m, despite today’s announcement.

The chancellor has scrapped stamp duty on property transactions up to the £500,000 mark, a move that will be welcomed by the average home buyer who stands to save nearly £2,500 on their purchase.

Of course, this saving will be more notable in some parts of the market, with the average London homeowner due to save over £14,000 on their transaction. With this stamp duty holiday also applying to the first £500,000 for purchases above this threshold, high-end buyers will also enjoy a considerable saving of as much as £15,000.

Enness Global analysed the current median sold price in London’s most prestigious property postcodes for transactions over £3m so far this year. They then looked at the current stamp duty tax cost and what it will be now with the discount considered.

Across these postcodes, the median sold price for transactions above £3m is £4.9m so far this year. At this price threshold, the stamp duty owed would be £504,394, falling to £489,394 with today’s discount considered.

The N2 postcode is home to the highest stamp duty bill. With a median sold price of £14.1m so far this year, homebuyers would usually pay over £1.6m in stamp duty, although with the discount applied this falls to £1,595,250.

The W1K postcode is also home to a stamp duty bill in excess of £1m. Pre-discount, the median sold price of over £9.2m would have racked up a bill of £1,021,050; however, with the discount applied this falls to £1,006,050.

The W1G, NW8, SW1W, N6, SW1A and SW3 postcodes are also home to a median sold price between £5.6m-£7.5m so far this year, meaning even with today’s reduction, stamp duty will still set these high-end homebuyers back by between £570,000 and £800,000.

Below data tables and saving based on the difference between the following.

Existing Stamp Duty Land Tax based on current thresholds of 2% between £125k to £250k, 5% between £250k-£925k, 10% between £925k and £1.5m and 12% over £1.5m.

New Stamp Duty Land Tax based on a 5% charged between £500k to £925k, 10% between £925k and £1.5m and 12% over £1.5m.

Postcode district
Median Sold Price (2020)
Existing SDLT
Saving
New SDLT sum
N2
£14,137,500
£1,610,250
£15,000
£1,595,250
W1K
£9,227,500
£1,021,050
£15,000
£1,006,050
W1G
£7,525,000
£816,750
£15,000
£801,750
NW8
£6,900,000
£741,750
£15,000
£726,750
SW1W
£6,675,000
£714,750
£15,000
£699,750
N6
£6,250,000
£663,750
£15,000
£648,750
SW1A
£5,765,000
£605,550
£15,000
£590,550
SW3
£5,600,000
£585,750
£15,000
£570,750
SW1H
£5,000,000
£513,750
£15,000
£498,750
SW7
£4,975,000
£510,750
£15,000
£495,750
SW1X
£4,790,000
£488,550
£15,000
£473,550
W11
£4,700,000
£477,750
£15,000
£462,750
W4
£4,600,000
£465,750
£15,000
£450,750
W8
£4,590,500
£464,610
£15,000
£449,610
W1H
£4,400,000
£441,750
£15,000
£426,750
W1B
£4,400,000
£441,750
£15,000
£426,750
SW15
£4,400,000
£441,750
£15,000
£426,750
SW19
£4,382,500
£439,650
£15,000
£424,650
SW10
£4,150,000
£411,750
£15,000
£396,750
NW3
£4,075,000
£402,750
£15,000
£387,750
W2
£3,970,000
£390,150
£15,000
£375,150
W1S
£3,965,000
£389,550
£15,000
£374,550
SW18
£3,950,000
£387,750
£15,000
£372,750
W1T
£3,865,000
£377,550
£15,000
£362,550
SW4
£3,862,500
£377,250
£15,000
£362,250
SW13
£3,850,000
£375,750
£15,000
£360,750
NW1
£3,825,000
£372,750
£15,000
£357,750
SW6
£3,775,000
£366,750
£15,000
£351,750
W1U
£3,750,000
£363,750
£15,000
£348,750
SW11
£3,350,000
£315,750
£15,000
£300,750
N7
£3,350,000
£315,750
£15,000
£300,750
W6
£3,200,000
£297,750
£15,000
£282,750
W1W
£3,093,768
£285,002
£15,000
£270,002
W1J
£3,000,000
£273,750
£15,000
£258,750
PCL average
£4,922,037
£504,394
£15,000
£489,394

Properganda PR

National and local media coverage for property businesses. Journo quotes delivered in minutes.

You May Also Enjoy

Breaking News

Freehold and Leasehold Reform Act-lessees can control their own destiny

Matthew Pennycock, Minister of State for Housing and Planning, has made a Parliamentary Statement regarding the future progress of the Freehold and Leasehold Reform Act 2024. The Government have formally recognised the “significant complexity of the task” and that the legislation was rushed in at the end of the last parliament and as a result…
Read More →
Rightmove logo
Breaking News

Rightmove’s weekly mortgage tracker 22/11/24

The current average asking price of a typical first-time buyer property is £225,340. For someone taking out an average five-year fixed, 85% LTV mortgage, the average monthly mortgage repayment on this type of home is now £1,104 per month if repaying over 25 years, compared with £1,138 per month a year ago (when the average first-time buyer property asking price was…
Read More →
Estate Agent Talk

The Architecture Of Attention Behind Social Media Addiction

In the digital age, social media platforms have revolutionized how we connect, share, and consume information. Behind their sleek interfaces lies a sophisticated architecture of persuasive technology.  These platforms employ intricate design patterns and technical elements to capture and hold user attention. From subtle visual cues to complex algorithmic systems, every feature serves a calculated…
Read More →
Breaking News

2025 Predictions for the Private Rental Sector

Allison Thompson, National Lettings Managing Director, Leaders Romans Group (LRG) “As we approach 2025, the lettings industry is entering a phase marked by stabilisation and opportunity. Rental inflation has slowed to an average of 3-4% for new lets, reflecting the effects of affordability constraints; renters’ budgets are beginning to limit how much rents can rise.…
Read More →
Breaking News

Response to Matthew Pennycook’s Statement on Leasehold Reform

Yesterday, Secretary of State Matthew Pennycook made a Ministerial Statement on the future of leasehold reform. Responding, Mark Chick, director of ALEP and a Partner at Bishop & Sewell LLP said: ALEP welcomes the ministerial statement which puts in place a timeframe and some objectives for the implementation of the Leasehold & Freehold Reform Act.…
Read More →
Estate Agent Talk

Essential Garage Storage Solutions for Small Spaces

Maximize your garage space with practical storage ideas that keep your items organized and accessible. If you’re dealing with a smaller garage, smart solutions can make a big difference in keeping your space neat and usable. 1.  Wall-Mounted Storage Wall-mounted storage is an excellent way to save space and keep your garage organized, especially in…
Read More →