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

AbbieP.
AbbieP. 22 Jul 2016

"While house prices in the most expensive eleven boroughs have declined values in the cheapest eleven boroughs continue to rise" - not a nice way to even out the price range. London is overrated as it

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AbbieP.
AbbieP. 21 Jul 2016

And try to profit from your decisions, I may add

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CommercialTrust
CommercialTrust 19 Jul 2016

Retirement investment has always been one of the biggest draws of buy to let. And the buy-to-let demographic is, on balance, older. (Over a third of our applicants are over 50 at the time of application.) It...

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Forrest Wheatey
Forrest Wheatey 11 Jul 2016

I find the time perfect for ever home-owner wannabe. Prices should slowly, but steadily drop, at least for the inner buyer. Making it harder for outsiders to buy properties (the whole Brexit thing means...

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property guru
property guru 11 Jul 2016

Why should Ajay even have to be looking for it. It should be public knowledge. Why is not just publish each years and to were it is and be AUDITED. Accountability.

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property guru
property guru 11 Jul 2016

Surprise suprise

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CommercialTrust
CommercialTrust 30 Jun 2016

This is great news for buyers and investors in a period of significant uncertainty. The 10-year buy-to-let fix at 3.99% in particular is excellent, a clear 100 bps ahead of the nearest competition. Though...

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Lee
Lee 30 Jun 2016

Let's see what happens to north-east property prices when Nissan announce they're leaving.

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DmitriKara
DmitriKara 29 Jun 2016

I just read another article about eviction rising and this was exactly what was on my mind, Housing has become "cat and mouse"...

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DmitriKara
DmitriKara 29 Jun 2016

I am really not surprised. I've seen one too many impudent tenants and in my humble opinion renters have one too many privileges and options to abuse heir landlord in so many ways...

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DmitriKara
DmitriKara 29 Jun 2016

There is still so much uncertainty and I will surely step back and see what's happening before I could make any decisions on my end.

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ChristinaReedUK
ChristinaReedUK 20 Jun 2016

I don't understand why it's always a war between the two sides. Either, way the landlord is probably keeping a detailed inventory and will see the changes you've made. I just don't understand why there...

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