Effect of stamp duty change

neverdespairgirl

Seems to be having an effect swiftly, sending prices downwards.

I had a look at SE3 - a postcode which is mostly Blackheath, and bits of Kidbrooke. There are a number of price drops dated 2nd / 3rd September around the new stamp duty threshold already. I searched for all properties in SE3 between £160k and £200k, incl. STC - 38 in all. I think there are 4 duplicates, so 34 individial places. And a lot of changes, as below:

Price changed: from '£167,950' to '£161,000

Price changed: from '£175,000' to '£165,000'

Price changed: from '£178,000' to '£167,500'

Price changed: from '£179,995' to '£169,995'

Price changed: from '£179,999' to '£169,995'

Price changed: from '£185,000' to '£180,000

Price changed: from '£195,000' to '£189,000'

Price changed: from '£200,000' to '£189,995'

Price changed: from '£194,995' to '£189,999'

Price changed: from '£209,995' to '£199,995'

That's 10 changes in prices in one day - nearly one in three.

What is also interesting is that the price drops aren't just from above to below £175k. Some are to quite a few grand below £175k (to stand out from the crowd?) and some from £20k - £25k above to £10k above, which must indicate a willingness to consider an offer for £175k.

I do think that this will cause smaller properties to drop as well. If a place drops from £175k to £165k, then places which were £165k have to look at doing the same.

mrstinchcombe

Its great isnt it. This notion of kick starting the housing market is making the crash come sooner than expected.

Brown was an incompetant Chancellor and now is the same as PM. Brown created an unsustainably large "boom" which anyone with any knowledge of economics will know will lead to a very large "bust". Its unavoidable, its simple economics!

Obviously this unsustainably large "boom" was the result of raping private pensions leaving them useless amongst the other labour policies of screwing students, public sector workers (most famously the Police) and of course low wage earners (10p tax).

alared

Margaret Thatcher once famously said "you can`t buck the markets"

Brown should bear this in mind.

baileysbattlebus

I've just had a quick look on Rightmove at our area - there are 16 out of 320 listed properties at £175k or below - and 5 of those are 1 bed new build flats.

I haven't looked at propertybee -

I'll have another look in a couple of weeks and see if any others go up for sale under £175k and if the if there are changes to the type of property listed - currently 9 flats, 1x1bed bungalow and 1x3 bed house up for auction
+ the 5 new build 1 bed flats.

It will be interesting to see if any houses get listed.

I guess it depends where you live what the effects of this might be. It's early days yet.

alared

Anyone with a house valued up to about £210k has just had it effectively devalued by the government to £175k

Buyers wont pay more,EA agents wont value them higher and sellers DESPERATE to sell will cave in and accept it.

GB has just accelerated the crash.

neverdespairgirl

Update on this - there are now 35 places (29 places excl. SSTC) in this price bracket in SE3.

Of these 42, there are, since 3rd September:

13 price drops

8 new listings

0 price rises

I also had a look at £125k to £160k, to see if the stamp duty threshold altering has had an effect on prices there. There are 9 places on offer (7 excl. SSTC), not really enough to tell.

purch

Margaret Thatcher once famously said "you can`t buck the markets"

Yeah....but that was only after she and 'Fatty' Lawson had spent the previous 3 years trying to do so, and failing dismally........

kennyboy66_2

mrstinchcombe wrote: »

amongst the other labour policies of screwing public sector workers (most famously the Police) and of course low wage earners (10p tax).

Just how will they manage on their index linked, final salary pensions?

Jonbvn

purch wrote: »

Yeah....but that was only after she and 'Fatty' Lawson had spent the previous 3 years trying to do so, and failing dismally........

Hey,

Leave Nigella's dad out of this. I happen to worship the ground she walks on!:rotfl:

GDB2222

alared wrote: »

Margaret Thatcher once famously said "you can`t buck the markets"

Brown should bear this in mind.

Weren't the government pretty much forced into the stamp duty move by the press / public opinion? I really don't get the impression that GB wanted to do this. It was pretty much the smallest change they could make whilst still making some concession.

Lotus-eater

alared wrote: »

Margaret Thatcher once famously said "you can`t buck the markets"

Brown should bear this in mind.

What she actually said was " You can't buck with the markets" .... or something similar.