Stamp duty

John Gapper

The decision by Kensington & Chelsea council to charge a one-off fee of £825,000 to a hedge fund manager who wanted to excavate and build a luxury basement will send shivers through the well-heeled of London.

Not many people will feel too sorry for Reade Griffith of Polygon Investment Partners but it throws a light on the high, and sometimes hidden, transaction fees attached to the inflated London housing market.

Section 106 agreements, the legal avenue used by Kensington to extract the fee from Mr Griffith and his wife, are usually struck between planning authorities and developers of commercial or residential developments, rather than individuals. Read more