Market rises to challenge of Osborne’s game changer

The changes in Stamp Duty Land Tax are already making a difference in the market, agents are reporting, with buyers quick to cotton on to their change of fortune.

Agents also seem to have quickly got their heads around completely different pricing strategies that don’t depend on the old thresholds.

Here and below, is an example: this mid-terrace property listed on Zoopla with an asking price of £125,950 would have attracted £1,259 SDLT under the old rates.

Under the new? Just £19.

One of those awkwardly priced properties as far as the old “slab” regime was concerned, it had already been reduced from £130,000 – perhaps because of the SDLT burden.

An extra £1,259 cash is very hard for many buyers to find, whereas £19 is a round of drinks.

Eye would be very interested to hear how you are experiencing things in your neck of the woods since last Wednesday’s game changer.

Are the buyers biting, even though it is so close to Christmas? Are sellers now digging in their heels and wanting higher prices?

And how busy are you compared with this time a week ago?

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4 Comments

  1. Yorkshire Agent

    Last week was our best sales week in months, however, most of the sales were generated pre-statement. The market now probably offers stock at the best value seen for sometime, as sluggishness due to the run up to the general election and pre Scottish Independence had undermined confidence, but that bubble seems to have burst,we shall now have to wait and see. AM mutual for those who are now committed will find excitement and energy in getting their offices prepared for the changes to come, the New Year holds a new future.

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  2. Andy Procter

    One of our vendors called us last Friday morning demanding that the buyers up their offer by £3000 (sale agreed 3 weeks earlier, solicitors instructed and survey/mortgage offer in place). The buyer would have been better off by about £4000 after the changes in SDLT. The vendor thought he should get a slice of the spoils. The buyer (rightly) said it was his saving not the vendors and that he was not about to pay more for a property that he had already reached his maximum on. The sale has for now fallen through! We are working on the vendor!

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    1. wilko

      You will probably find that the property re sells for the higher price. Where we are we have seen higher bids on many properties from buyers who fear that the new stamp duty will lead to further rises in the new year.

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    2. Quickbrit

      How is this in any way to do with AM?

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