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Reluctance To Sell Due To Cost Of Stamp Duty Means Shortage Of Houses On Market

Published on: 29 Dec, 2015
Updated on: 31 Dec, 2015

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Housing Market Report: Latest Review Of What’s Happening With Property In Guildford

Tony Jamieson, senior partner at Clarke Gammon Wellers, talks about stamp duty impacts, purchasers from London and ‘nimbys’ in his latest in the series of local reports on the Guildford housing market.

Continuing from my previous report, I think it is clear that Guildford is suffering from a distinct shortage of stock. In fact, it has done for most of the past year.

In my opinion, this is caused by the fact that people living in £1.5 million houses, and looking to move upwards, are reluctant because of the high cost of stamp duty. This would be £200,000 on a house worth £2 million.

Brooklands in Bramley - Spacious bungalow set centrally to six acres, with equestrian facillities.

Brooklands in Bramley. A spacious bungalow set centrally in six acres, with equestrian facilities.

People in this position are therefore seeking to extend their existing properties. They are converting into their roof spaces and outbuildings/offices into the garden. They are therefore not disposing of their houses.

Consequently, those people looking to move to houses worth £1.5 million, currently living in a house worth £1 million, are faced with no stock. They, in turn, are reluctant to commit to selling their own house until they can find something to move to themselves.

In addition, we have not seen as many purchasers moving out of London this year owing to the slowdown in London house prices.

Old Till Cottage - West Clandon- Charming Georgian Two Bedroom Cottage in need of modernisation recently sold.

Old Till Cottage , West Clandon. This is a charming Georgian two-bedroom cottage in need of modernisation which was recently sold.

Changes in stamp duty brought in by the chancellor in his autumn statement are also affecting the buy-to-let market. This may again have an impact upon the ability to sell property at the lower end of the market. It will be particularly true if first-time buyers are not able to raise sufficient deposits to be able to buy these properties.

As we all know, there needs to be more houses built to meet the growing population. It is hoped that planning policy will enable this to take place in appropriate areas which are sustainable. This may mean us having to change our ‘nimby’ attitudes though.

It will be interesting to see what 2016 brings, but I suspect it will be a similar story.

Certainly at the beginning of the year, only correctly priced houses will sell. Any property which is overpriced will remain on the market and will often be seen advertised as ‘price reduced’ a few weeks later.

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test 2 Responses to Reluctance To Sell Due To Cost Of Stamp Duty Means Shortage Of Houses On Market

  1. George Potter Reply

    January 4, 2016 at 9:21 am

    It must be nice to live in a world where the stamp duty on moving from a £1.5 million to a £2 million property is a major concern.

    Meanwhile in the real world most of us have to worry about sky high rents and the lack of affordable homes in general.

    Forgive me if I shed few tears for those stuck in £1.5 million properties due to a shortage of £2 million properties.

  2. Bernard Parke Reply

    January 4, 2016 at 11:43 am

    There may be some relief for wealthy landlords in the buy-to-let market.

    A consultation document issued by the Treasury last week stated that such landlords could be excluded from the higher rate of stamp duty on second homes.

    However, this will not benefit those paying sky-high rents and increasing year-on-year council tax.

    Homes affordable or otherwise will be just a pipedream.

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