Prices dropping after stamp duty holiday ends

Crashy_Time

Redwino222 said:

I don’t really understand why the stamp duty is having the effect on prices - it it indeed is.  The average savings aren’t huge and aren’t equal to the increases.  

It is basically fuelled by people who don`t want to rent any more/at all and who can`t afford the stamp duty and who only look at the monthly payments, if mortgage rates rise they will end of worse off than when they were renting IMO.

Redwino222

But surely most of these folk are first time buyers who wouldn’t be paying stamp duty any way (unless buying in a very expensive market). 

Getting_greyer

Redwino222 said:

But surely most of these folk are first time buyers who wouldn’t be paying stamp duty any way (unless buying in a very expensive market). 

As FTB's get older, most likely a significant amount will already have families, so they are looking at bigger more expensive properties.  Whilst they wouldn't normally pay sdlt on the first 300k (?) They are seeing the the type of homes they're after rising quickly. So they may be jumping in due to fear of losing out so to speak.  Obviously that's not all ftb.

goodwithsaving

Unfortunately some of us are moving due to circumstance and having to which is making things a nightmare. I would try and link the sales to be honest, yours will go for more to offset the high price on a purchase (unless significantly upsizing). Renting is limbo and expensive. I think SDLT is partly driving the insanity, but lifestyle choices as people have more flexibility with work is too.

SpiderLegs

prices will prices will be 30% down by Christmas after SDLT ends and interest rates go up.

GDB2222

Redwino222 said:

But surely most of these folk are first time buyers who wouldn’t be paying stamp duty any way (unless buying in a very expensive market). 

My SIL is selling his two bed flat for £450k. Really, that's more or less FTB level in London. 

Gavin83

I don't think house prices will drop by much, if at all. However I do think we'll return to more normal times shortly where houses go for asking price or just under rather than going for tens of thousands above like they do at the moment.

Thrugelmir

Redwino222 said:

But surely most of these folk are first time buyers who wouldn’t be paying stamp duty any way (unless buying in a very expensive market). 

Property market requires a chain. FTB's are more often or not buying from somebody upsizing. 

Redwino222

GDB2222 said:

Redwino222 said:

But surely most of these folk are first time buyers who wouldn’t be paying stamp duty any way (unless buying in a very expensive market). 

My SIL is selling his two bed flat for £450k. Really, that's more or less FTB level in London. 

That is terrifying!  

niceguyed

SpiderLegs said:

prices will prices will be 30% down by Christmas after SDLT ends and interest rates go up.

SDLT holiday ending  won't account for anywhere near 30%. Low interest environment here to stay for the foreseeable. Perhaps 10% when furlough ending bites and the heat has gone from SDLT.