‘Price bunching’ – is this an unexpected consequence of the new mansion tax?
Last weekend’s FT carried an interesting article suggesting that asking prices were
beginning to ‘bunch’ just below the thresholds for the new charges (£2 million, £2.5
million, £3.5 million and £5 million).
With the Valuation Office tasked with identifying which houses fall within these valuation
bands, it does seem logical that – beyond Land Registry data on sale values – they might
take asking prices as evidence. So the theory that owners might skim their asking prices
just below the tax thresholds would seem to hold water – however, despite the continuing
wave of post-Christmas price reductions, we have yet to detect a trend of vendors pricing at
£1.95 million, £2.45 million, etc….!
That said, we are readying ourselves for the day when values are apportioned by the VO –
when a wave of property owners can be expected to appeal against assessments that value
their homes at levels more than they ever dreamed of!
If you want any help or advice regarding your next house mov, please don’t hesitate to get in
touch.
