Is the stamp duty hike driving the property auction market?

Is the stamp duty hike driving the property auction market?

Property auctioneer, Auction House, believes that the impending stamp duty hike due to come into force in April has been a major factor behind a record rise in lot entries this month.

Auction House says that 703 lots have been entered in its first round of auctions between 28 January and 26 February - a 13% rise compared to the same period last year.

Founding Director, Roger Lake said: “The Chancellor’s introduction of an additional 3% stamp duty for investors and second-home owners has sent an adrenaline rush through the market. We have worked hard to publicise the short window that he created for sellers and buyers, and this has certainly helped boost entries into our February auctions.

Whilst the precise details won’t become available until the Budget is unveiled next month, canny purchasers are realising that buying now prevents them being caught out by the tax surcharge, whatever form it may take.”

Recent reports have suggested that buy-to-let landlords are poised to sell 500,000 homes in the next year, followed by another 100,000 expected to be sold each year until 2021.

Roger Lake added: “I’m not convinced that the number of properties hitting the market will be quite as high as the reports suggest. But two things we know for sure: that the tax rise will come into place from 1 April 2016, and that properties will need to have completed by this date - not simply to have exchanged - to avoid the higher rate. With the Budget scheduled for 16 March, that gives us a mere two weeks between having certainty of the details and the changes coming into effect.

Nevertheless, our February auctions provide a chance for buyers to guarantee beating the stamp duty hike in a climate of low interest rates, with those selling benefitting from strong demand, lively bidding and a higher hammer price.

Early March sales with shortened completion periods can also deliver purchases at the old Stamp Duty rates - but sellers will need to act quickly to capitalise on the opportunity.”

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Northerner 20 Oct 2016

Any views from outside the M25? No wonder politicians can't get the housing big picture when everyone seems to think that London is the yard stick, when it absolutely is not.

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Sean Lees
Sean Lees 13 Oct 2016

I think that the pest control really depends on the situation. If the tenant moved in and found an infestation that needs pest treatment service, I think it's more reasonable that the landlord should pay...

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Kevin 13 Oct 2016

Please Sian Berry Dan Wilson Craw LANDLORDS DO NOT WANT TO RAISE RENTS They are being forced to because of Section 24! An unfair, punitive tax hike that will be a disaster Green Party, Generstion...

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Fletcher88 11 Oct 2016

Absolutely agree! Moreover property prices edged up with 0.7% this month as the market recovered from the initial Brexit hit

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Gary Das
Gary Das 06 Oct 2016

A lot of lenders (especially the high-street banks and lenders people approach first) could do more to accommodate for the self-employed. It can really be a struggle, as I found out myself last year when...

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richardrawlings 04 Oct 2016

Not sure I understand this! If Basildon and Hemel rose 68% and 52% respectively, why do they not appear in the top ten list, which appears only to feature those in the minus 20's!! Is it me?

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luxus 27 Sep 2016

It can be stressful. More clarity is needed on the process, from a customer perspective and consideration should be given to using the Scandinavian model where the sales process is much quicker.

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Melissa_Green 26 Sep 2016

Green belts are normally designated around capitals and other major cities and conurbations and their aim is to prevent urban sprawl by keeping land permanently open. The essential characteristics of green...

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Jimmy_McCoy 16 Sep 2016

I think that the main reason to buy garden purchases in last minute is because people always search for the best deal. In summer months there are abundance of seasonal goods and it means more low cost

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Jimmy_McCoy 16 Sep 2016

Buying a home often is more expensive than you expect. There are lots of hidden costs such as: stamp duty, surveys and valuations, mortgages etc. that can add more than 10% to the total bill

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Homebuyerconveyancing 15 Sep 2016

We are seeing a massive influx of Homebuyers using online Estate Agents. The winners are the online portals that still aim to manage the customer journey to homeownership. They provide a valuation service,...

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oliviaG 12 Sep 2016

Without a doubt renovating can truly be very beneficial to many homeowners but it depends to a great extent on the condition of your home and the parts of it you want to refresh. Before you start you should...

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