| A new stamp duty enacted last year on London luxury homes caused a 15 percent drop in sales, Knight Frank reports in a study. But the tax has done little to stem increases in the prices for homes in prime central London, which rose 8.4 percent in the last year. London luxury home prices are now 55 percent higher than in March 2009, the market low, the consultancy says.
The government imposed the seven percent stamp duty on properties priced over £2 million last March, hoping to raise revenue from skyrocketing interest in London's most luxurious homes. In the next few months, sales dropped 25 to 35 percent, Knight Frank says...............................................Full Article: Source
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