For the last few years the market below £2m has been by far and way the most active in prime central London. Investors often looking to buy a number of units and invest many millions into London have aimed at picking up properties in the £1-2m bracket. In 2014 in particular, because of the 'threat' and coverage given to mansion tax investors have focused on buying property in the bracket of £1.5-1.9m. These properties allowed them to save considerable money when they purchased as they were charged at 5%, they were also attractive at this level because it meant they would be exempt from mansion tax. It was and is still possible to buy a good 2 bedroom flat in Prime Central London for around about £1.75-1.85m. The sort of flat that would be the perfect rental investment while still allowing for capital growth up to £2m, a no brainer under the old stamp duty rules.

Now however, the goal posts have changed, in fact if you buy a property at £1.825m now and work out the stamp duty percentage on the whole price, you are being charged at 7.27% a difference in real terms of £41,500 and perhaps more importantly an insurmountable psychological difference.

The new “£2m level” is £1.125m; this is the point at which buyers feel no difference. Anything under this buyers now are going to be saving on stamp duty.

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About Henry & James

Established by Henry Brahm, father of the current Chairman Pierre Brahm, Henry & James, through its Belgravia and Chelsea offices, markets some of London's finest properties to both UK and international buyers.

Our friendly, proactive team is renowned for their in-depth knowledge of the local market. As such we can advise on the most effective means of renting, buying, selling, managing and investing in prime central London property. Always confidential, Henry & James regularly deals with properties 'off market' when total discretion is required.

We maintain our high standards by setting benchmarks against industry guidelines set out by professional bodies including The Property Ombudsman, The Association of Residential Lettings Agents (ARLA) and by subscribing to the Approved Code of The Office of Fair Trading.

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