New research commissioned by the London Central Portfolio shows that the jump to 3% Stamp Duty on property purchases over £250,000 is having a ‘devastating’ effect on the market.

The research, conducted by Cass Business School, saw 930% more transactions of homes in the £240,000 to £250,000 price bracket than in the £250,000 to £260,000 one. It also says many owners are being forced to drop their asking price by up to £10,000 to avoid the stamp duty hike.

Some  73% of home owners have properties worth between £125,000, when Stamp Duty first becomes payable at 1%, and £250,000 when it rises to 3%.  The 3% threshold has not been changed since 2000 - when the average house price was just £79,242.

London Central Portfolio chief executive Naomi Heaton said: “The Government need to grasp the nettle and reduce the tax hike at £250,001. While it will have a cost to the Exchequer, it will be a drop in the ocean compared with the stimulus packages already introduced.

“The long-term impact for these packages is unknown and probably dangerous, whilst reducing the Stamp Duty rate is guaranteed to make a difference for good, for second steppers and first-time buyers.”

If you’d like to talk to a specialist conveyancer about selling your home, please contact Sharon Sangha at Lawson-West on 0116 212 1000.