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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Latest Comments

Tony Gimple
Tony Gimple 09 Dec 2017

Linking professionalism to limited company borrowing is a flawed concept. Despite S24 etc., limited companies are the most tax inefficient way of running a property business and leave borrowers seriously...

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Evelyn Attwood
Evelyn Attwood 01 Dec 2017

It's normal. If you plan to buy a house in one of the most beautiful spots in the country you should pay a high price.

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Evelyn Attwood
Evelyn Attwood 01 Dec 2017

I think that the situation will be the same at December.

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Scott Garnet
Scott Garnet 06 Nov 2017

If you have a patio or a porch it is important to make sure that any connecting doors are secured. Good advice for sliding glass doors is replacing the panels with storm resistant glass and getting heavier...

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richardrawlings
richardrawlings 01 Nov 2017

What has not been mentioned here is the effect of not only higher interest payments, but also that these payments are less likely to be offsettable as a business cost due to the scaling back of mortgage...

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Kelvin Lloyd
Kelvin Lloyd 09 Oct 2017

IT is up, to the Planners. If they will only give permission for bungalows on certain (suitable) sites, they will be built.

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maggie swift
maggie swift 09 Oct 2017

It's just the beginning of the shocking rise.

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maggie swift
maggie swift 09 Oct 2017

I have recently read that the bungalows can provide social housing for elderly residents in London.

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zoe glover
zoe glover 05 Oct 2017

Update! Worst company I have ever dealt with. Undervalued a Cambridge property by over 100k, wont take on any evidence of valuation including a RICS valuation done 3 years ago for the very same value...

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Paul Edwards
Paul Edwards 27 Sep 2017

Its nonsense articles such as this that make it harder to get clients to realise just how difficult the market is out there. When you see Rightmove and there are more 'price reduced' then 'new' most days...

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Tom Allen
Tom Allen 20 Sep 2017

Absolutely agree with you!

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RyanGeo
RyanGeo 18 Sep 2017

A sharp correction would be a less dramatic expression to use. That is already underway in certain sectors in Reading where I practice as Chartered Surveyor

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