Nearly half of all stamp duty revenue across England and Wales is collected from property sales in London, research from estate agent Knight Frank has discovered.
Whilst London accounted for just 13% of all property transactions for the first three months of 2015 it delivered 46.9% of total stamp duty revenues.
Recent changes to Stamp Duty see all properties sold for over £1.5m are subject to a top rate of tax of 12%.
Tom Bill, head of London residential research at Knight Frank, said: “December’s rise in stamp duty appears to have had the single biggest dampening effect on demand.”
“In the period between the general election and the summer holidays, buyers in London have taken stock of new market conditions, and appear less inclined to rush into making decisions,” Bill said.
The data also shows that homes worth £1m or more contribute 34% of all stamp duty revenue, up from 26% a year ago.
A year ago, London sales accounted for 43% of total revenue. The new top rate has pushed up the proportion of revenue taken in London as there are disproportionately more of the most expensive properties in the Capital.