Stamp duty 3% increase (2016 budget), and its effect on future house prices?

katesheet

The 2016 March Budget coming up will show an increase of stamp duty which the Tories said they would do.

What effect would this have on house prices in the uk?

Landlords with many Buy to let properties might see the 3% increase as a drop in the ocean and carry on buying at the same pace as before,

Second time buyers (buying for a buy to let property) might see the 3% increase as quite high, and after the increase of stamp duty is in place they might think twice about buying another home.

How do you think this will effect the rise of house prices?

Do you think they will continue to rise? Rise at a slower pace? or the price of them will slowly decrease?

If you are a landlord, does this 3% increase make you think twice about buying another property after it is in place? or you will still buy properties regardless of the 3% rise ?

Conrad

I'm selling a buy to let to buy another in spite of the SD. It's just a business cost. What's the alternative, buy a £150k subway franchise all of which is pure cost?

CLAPTON

taxes generally increase the price and reduce the volume of sales

as other factors are at work, it will probably be difficult to determine

wymondham

Maybe they'll also have a 'Help to Stamp' scheme also?

wotsthat

I don't know what the effect will be on house prices but there's a potential for influencing behaviour.

I own a holiday home and a main residence. The plan is to sell both and make my main residence in the same town as the holiday place.

However, if I decide subsequently to be a landlord I'll have to pay 3% extra stamp duty whereas if I change my main residence but keep the holiday place to let out there's no extra stamp duty to pay.

The chances are I'll sell the holiday place (I'll need the equity/ don't really want to be a landlord) but the changes will force me to consider that logic much more carefully.

Galeeno

It might affect prices for a short period but then they could start to go back up again.

kinger101

It don't think it will make that much difference. If you're going to own the property for a period of 10+ years, the 3% difference is minimal. In many parts of the country, that's how much property prices might increase in 3-6 months anyway.

michaels

I don't know, I think we had a 'mad panic' market at the start of this year. If sentiment changes the market can turn round very quickly....

richdeniro

My friend is an estate agent in Sutton (South London) and every 1 or 2 bedroom flat that comes on the market is going to amateur BTL buyers desperate to buy before they miss out on the property bandwagon. Flats that would have previously gone for 150k are going for 220k+ with sealed bids.

caronoel

Very likely to see a slight dip in prices in the low end of the market (< £400k), before it picks up again to 5%+ trajectory in or around Summer time.

A clever BTL investor would be looking on the temporary dip as a good buying opportunity

I know I will be looking soon.

ViolaLass

richdeniro wrote: »

My friend is an estate agent in Sutton (South London) and every 1 or 2 bedroom flat that comes on the market is going to amateur BTL buyers desperate to buy before they miss out on the property bandwagon. Flats that would have previously gone for 150k are going for 220k+ with sealed bids.

It would be very silly to overpay by nearly 50% to avoid a 3% tax.