Stamp duty back, House price crash back as well?

the_ash_and_the_oak

(don't think it will lead to people asking for bigger discounts because in the main think buyers are worried about losing out - ironic because at same time think sellers are worried about sales falling through)

brit1234

HAMISH_MCTAVISH wrote: »

Because the average deposit is already over 25 grand. If you've got the cash to plonk down a 25K deposit, raising another grand or two for SD is no big deal.

If we were still in the times of 100% mortgages, I might agree with you that it would have an effect.

But for todays buyers, it's insignificant.

Well living in London It has taken me 5 years to almost reach 25% deposit, then I have to save solicitor fees, surveys, mortgage fee, moving costs and now £2,000 stamp duty. Thats a extra 3-4 months hard saving. Now I am going to want to haggle hard to reduce the asking price.

The stamp duty thing will put x amount of people off and make x amount of buyers ask for a reduction.

Thats only part of the housing stimulas now gone, next up the dwindling funds of the housing assaociations for purchasing newbuilds and ftb loans. The govenment is now prioritising funding to frontline police,nhs,teachers not builder bailouts.

Then we have raising inflation which will bring up interest rates.

the_ash_and_the_oak

I don't think it will have the effect of people asking for a knockdown but what affect it might have is on the LTV. 22k saved gives for a 90% mortgage allows 198k. Reduce to 20k for a 90% mortgage allows 180k

Cleaver

brit1234 wrote: »

Well living in London It has taken me 5 years to almost reach 25% deposit, then I have to save solicitor fees, surveys, mortgage fee, moving costs and now £2,000 stamp duty. Thats a extra 3-4 months hard saving. Now I am going to want to haggle hard to reduce the asking price.

The stamp duty thing will put x amount of people off and make x amount of buyers ask for a reduction.

Fully agree with your logic and agree that it has an effect on the market. I just don't think that that alone will cause a further crash to the housing market.

phil_b_2

Sorry, but only rapid rises in interest rates will bring on a significant crash IMO.

Stamp duty is a small detail in the whole purchasing decision.

the_ash_and_the_oak

phil_b wrote: »

Sorry, but only rapid rises in interest rates will bring on a significant crash IMO.

Stamp duty is a small detail in the whole purchasing decision.

agree that it is only a detail in purchasing decision but you don't feel that for a 90% mortgage each pound removed from a deposit is ten pounds less borrowable?

silvercar

Stamp duty return to 125k only effects the properties between 125k and 175k.

Doubt there are many properties in that bracket in London and SE.

Round here, even with the houseprice fall, the only properties around the 150k are ex-council flats. Always difficult to sell due to the risk of the council billing owners for refurbishing plans; I doubt the imposition of stamp duty will effect the price that much.

brit1234

While stamp duty return won't likely signify the crash restart it will be the start of denting confidence. I think innternational economic incidents will further feed negative sentiment which will start it again. Greece, dubai, spain all looking dangerous and there are lots of hidden hazzards out there. Unsure about greece but spain, dubai, US, Ireland and the UK are the countries with the biggest property bubbles

ses6jwg

Bring on the crash, got a 20k deposit sat here ready.

chucky

brit1234 wrote: »

Well living in London It has taken me 5 years to almost reach 25% deposit, then I have to save solicitor fees, surveys, mortgage fee, moving costs and now £2,000 stamp duty. Thats a extra 3-4 months hard saving. Now I am going to want to haggle hard to reduce the asking price.

The stamp duty thing will put x amount of people off and make x amount of buyers ask for a reduction.

doubt it Brit - there are only 173 houses in London (yes the whole of london that would now be liable for Stamp Duty after the 1st of Jan). it will have hardly any impact in London if at all.
http://www.rightmove.co.uk/property-for-sale/find.html?locationIdentifier=REGION^87490&minPrice=125000&maxPrice=175000&displayPropertyType=houses

if your worried about paying £1,750 extra when buying a property and you're stretched financially - i don't think buying a house is for you.