December 9, 2015 at 12:30 #20536
The Government has recently suggested that they favour the growth of the cheaper on line offerings. Perhaps it is time for an agency body to counter with the ‘fees’ the Government take in SDLT! Example: House sale of £300,000. Typical independent agent fee in my operating area is 1.00% =£3000. Government SDLT for buyer=£5000 plus VAT on AGENTS fee=£600 Total £5600 without considering the VAT on the client or purchaser conveyancing fees for the sale /purchase or removal vans. The agent’s client then buys her parents’ home at £475,000 adding another £13,750 SDLT. So in this very short transaction the Government ‘fee’ is £19,350 and the agent’s fee is £3000.
Even if there were an agent’s fee of 1% on the upward purchase of £4,750 the two agents fees total £7,750 compared to the Government ‘fee’ of £20,300 as the VAT on upward agent’s fee is a further £950.
So to conclude. The Government ‘spin’ now appears to favour the cheaper on line offerings to perhaps try and reduce the cost of moving when it is more likely that it is their own ‘fees’ that are preventing people moving more often. So when anyone suggest that full service agents charge too much money the Government ‘fees’ range from 2% to 5% on the average to middle property price range to 12% on prestige (how confusing is that)! So technological developments may help achieve their objective but would have no impact on by far the largest cost of moving – Stamp Duty Land Tax!
Wouldn’t it be great if an agency body actually defended the full service agent’s position and came up with a plan that would help unify the independent sector to defend our position in the future?December 9, 2015 at 14:16 #20537
I posted the following a couple of days ago but the thread has dropped into the Archive now. I’m not trying to hijack your point, Mr Flowers but I would suggest it’s absolutely relevant.
OPEN LETTER TO THE RT HONOURABLE GEORGE OSBOURNE MP
You don’t know me. You don’t need to. I am just a minute tooth on a teensy cog, which is whirring frantically away inside a mahoosive machine best known as the property industry – the same property industry you appear to want to meddle with and FUBAR under the poncey heading of “Injecting innovation”.
But I bet you DO know a certain chap by the name of Kevin Hollinrake, MP. He is now a colleague of yours. You’ve got a good man there – he was once a colleague of ours – AND I WOULD SUGGEST HE HAS FORGOTTEN MORE ABOUT THE PROPERTY INDUSTRY AND WHAT IT STANDS FOR THAN ALL OF YOUR ADVISERS AND HOUSING MINISTERS WILL EVER BE ABLE TO LEARN.
Take it from this teensy weensy cog – he’s your man to advise you on what your terminology “quicker… and cheaper” will REALLY spell out for homeowners…
Of course it’s your call – but at the end of the day it will be your name that is remembered by every undersold vendor and every penny they feel they’ve lost will be down to YOUR “innovation”.
Speak to Kev. He’ll keep you right.December 9, 2015 at 14:42 #20538
I was watching Gold Rush the other night and behind one of the guys was a sign that read
“Do Not Steal
Our Government Does Not Like Competition”
Made me laugh!December 9, 2015 at 16:06 #20539
Pity there’s no ‘Like’ button for the forum, Gump!December 9, 2015 at 16:35 #20540
Yeah, this part doesn’t seem as seamless as the main one.
But thank you for the thought of a like!
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