House Offers Slashed After George Osborne's Stamp Duty Reforms

More Cases Of "Gazumping" Hit Central London Properties

12.12.2014

Following George Osborne's announcement that he would be restructuring stamp duty, property buyers are demanding huge last-minute price reductions on central London homes.

The practice of 'gazundering' - demanding a lower price after a price has already been agreed - has become more common in the capital, as a direct reaction to the autumn statement reforms. 

According to estate experts, this trend has not been this popular since 2009, in the wake of the Lehman Brothers disaster. 

With the new system creating a 12% top rate on homes worth more than £1.5m, some bidders have reduced offers by as much as £500k. The changes announced by the Chancellor means that buyers of any home worth more than £937k will have to pay more stamp duty than before. 

Talking to the Evening Standard, buying agent Henry Pryor spoke of his gazundering experiences first-hand. 

He said: "I have revised my offers on behalf of clients on two properties as a result of the Autumn Statement, one by £125k and one by £87k. It was felt the vendors had to take the hit.

"Yes, the trend is back. That's not surprising, given how jittery the market has been over the past ten days or so."

Expert Opinion
The housing market in London is as competitive as ever and the changes to stamp duty regulations have had an almost immediate impact on the market, with people adjusting their offers in a bid to avoid higher levels of stamp duty.

“As we predicted the stamp duty reforms have not been welcomed by those in London and other areas of traditionally higher prices and purchase prices are changing as a result. This illustrates the importance of taking on legal expert legal advice to ensure any property sale is conducted quickly, efficiently and professionally.”
Helen Hutchison, Associate