Are you splashing out on a £1million manor in the near future, if so you had better hurry up if you want to beat the stamp duty deadline. April 6th sees the stamp duty hike take effect so that the top end of the property market will witness an increase of 5%, This rate was set out in the budget of 2010 but is now fast approaching. Translated into monetary terms for those looking in the premier price band for houses they will have to pay an extra £17,000. The average tax paid on a £1million home will rise from £68,449, the current amount paid, to £85,561 after April 6th.
In 2010 there were 6,610 properties sold over the million pound mark, average sales were £1.71million which produced the government £452million in revenue. From April 6th onwards the average stamp duty levied on million plus homes will now be £85,561, this will generate an extra £113million for the government coffers annually. According to the Halifax there are 170,000 homes in England and Wales which are valued at £1million and above, more than you might think.
Many people do not think that it will upset the property market too much because at the high end of the market buyers will not pay much attention to it. According to research 52% of people interviewed believed that the rise in stamp duty will have no impact on high-end property prices.
However what you get for your £1million plus are varied throughout the country. For example in Harrogate in Yorkshire £1.15million will buy you a six bedroom farmhouse with a triple garage. The house comes with lawned gardens and views of the open countryside. In Chorley, Lancashire £1.1million will buy you a period detached property with a stable and two outbuildings situated in 4.7 acres of land. Helston in Cornwall has a Grade II listed former vicarage for £1million set in 0.56 acres of land, The property has nine bedrooms and four reception rooms.
For the same amount of amount you get considerably less in Cambridge. There £1.1million will only get you a 5 bedroom family home with just a front and rear garden. Prices in Cambridge have been rising steadily and due to the demand for housing there house prices reflect this. On the other hand Covent Garden in central London only offers a two bedroom flat for £1.95million. The flat does have a balcony overlooking Covent Garden and is close to all shops and restaurants but in terms of size and value for money you get a lot less in the capital.