X

Sign Up

or

By signing up I agree to Property Tribes Terms and Conditions


Already a PT member? Log In

Sign Up

Sign Up With Facebook, Twitter, or Google

or


By signing up, I agree to Property Tribes Terms and Conditions


Already a PT member? Log In

Log In

or


Don't have an account? Sign Up

Forgot Password

To reset your password just enter the email address you registered with and we'll send you a link to access a new password.


Already a PT member? Log In

Don't have an account? Sign Up

  • Property Prices

    What effect do you think Stamp Duty increases will have on property prices?

    Do you think higher value properties will be mainly effected?

    What's the general consensus ?
    0
    0
    Good question!

    We are already hearing that there is a rush to complete purchases before the 1st April deadline, so, I believe after that, there will be something of a lull - the calm after the storm, so to speak.

    Then it will gradually bed in and become the "new normal".

    Investment buyers will probably try and negotiate the price down to accommodate the increased SDLT or we may find "stamp duty paid" type incentives.

    It will probably put the brakes on the market a little bit - both at the very low end where 3% on a (for instance) a £100K property that was not subject to SDLT is quite a significant difference - and it will impact on higher value properties as well.

    With a decrease in investment buyers and landlords selling up due to Clause 24, prices may be reigned in a bit, but rents will almost certainly go up as PRS supply dwindles.
    1
    0

    Southern investors will look more at the North which will grow the northern Market yields especially HMOs will become even more popular as the south cools the North will catch up..only a bit . Stamp on northern cheaper properties is substantially less than the whopping prices paid in London and the south ..just guessing who really knows what's gunna happen
    Kim...Northerner
    0
    0
    I see the places up North increasing although it won't be massive but it will be consistent and I expect the south to be exactly the opposite. A slow decline in prices and consistent drops. This is my prediction after the initial period and will become the norm for 18 Months. The likes of Manchester will see good growth and will continue with the great yields as rents increase due to demand
    1
    0

    [Image: New-logo2.png] Manchester based investor. I buy, sell, renovate and rent investment property in East/North Manchester Wink email: mike@brentwoodinvestments.co.uk Call: 0161 681 3724

    Nothing much. I agree with Kim but.... An extra 3% brings it back to old sdlt rates.
    0
    0

    THIS PROPERTY TRIBES ACCOUNT IS NO LONGER USED.
    DO NOT SEND PRIVATE MESSAGES.

    --- MORE INFO HERE ---

    YOU CAN REACH ME AT BESPOKE FINANCE or MY TEAM AT 08009202001

    I think it could really depend on it's effect in combination with Clause 24.

    If prices continue to rise, even at a slower rate, it is likely to have little effect once factored in - although investors will begrudge the initial uplift being diverted to GO's coffers and not their back pockets.

    If prices stagnate then the extra 3% investors have to pay will equate to a loss in the short term so will depend on their business model - eg. could put the brakes on flipping.

    If prices begin to decline, certainly a possible result of C24 in the 2-bed flat sector, that 3% significantly magnifies the near term loss/risk for an investor and could put a large number of them off - leading to a negative exponential function on prices as less demand from investors causes further drops, putting of more buyers and snowballing as people (FTB included) decide to sit it out and wait for the bottom.
    0
    0

    There is one area of the market where George Osborne’s increased stamp duty will not apply and that is the purchase of second properties that are worth £40k or less.

    This could see landlords acting as "regeneration agents"!

    Of course, these types of properties can only be purchased by cash buyers.
    0
    0
    (18-02-2016 01:08 PM)Vanessa Warwick Wrote:  There is one area of the market where George Osborne’s increased stamp duty will not apply and that is the purchase of second properties that are worth £40k or less.

    Mobile homes are exempt too. Will converted shipping containers count as mobile homes?IdeaTongue
    0
    0
    Some data released today on this topic:

    Around one in four UK adults who were considering a Buy To Let property investment have been put off by the Government's plan to introduce a 3% additional stamp duty and cut tax relief on their finance costs.

    Research from online investment platform rplan.co.uk has discovered that 9% of UK adults have given up on aspirations to own a BTL property because of the government’s plan while 30% of UK adults are still considering whether to do so. Around one in seven (14%) existing landlords say they will now sell one or more of their properties because of the new rules.

    Under the changes, the stamp duty on buying a £250,000 BTL property will rise from £2,500 to £10,000 from April, while that for a £400,000 property will more than double from £10,000 to £22,000. Also, from 2017, the tax relief currently allowed on finance costs such as interest payments on mortgages and loans to buy furnishings will be gradually reduced over four years.

    Those planning to invest in BTL were going to use savings and investments worth an average of £43,592 to buy a property. Instead, 39% of these adults will use the money to save in a cash account, 30% will invest in an ISA, 20% will put it into their pension and 13% will put it in other stock market investments.

    Full/source story
    0
    0

    It will have a major effect on anything above £250k where the only sales market for the product is a buy-to-let buyer with the SD going from £2,500 to £10,000. The effect will mean the price of a property over £250k will come down, to reflect the reduced demand and the higher transaction costs.

    SD is paid with cash only as people can't finance SD so if really effects, demand and the headline sale price.

    The higher the property the more if errects obviously, it will dampen demand along with the other tax changes that's for sure, how much is anyones guess, but I am hoping it makes it better for me anyway as I often come up against highly geared investors offering above what an asset is worth and maybe the changes lead to less competition when buying.


    0
    0
    It will no doubt have a temporary dulling effect. We will lose some investors but others will come to the fore.
    The market will find its new level and may be leaner and fitter as a result

    Fees are a part of the short term pain.
    When the long term vision is fully assimilated they become just an annoying necessity.

    If you want to get to the top of Everest you have to fork out on some expensive kit before you even take your first step..
    .
    1
    0

    Jonathan Clarke. http://www.buytoletmk.com