Thu 04 Dec 2014
I received the news on the changes to Stamp Duty with interest. Sowerbys are renowned for selling character properties in all price ranges. 2014 has been a great year and we have made a number of sales in the £1m plus market. Having digested the changes and done a few mental sums, It is fair to say that it has good and bad points for our wide variety of buyers.
There are many positives in the changes, for example, by taking away the hard thresholds there should be a less distorted market. Previously a property considered to be worth around £550,000 would likely have come to market at £495,000 to generate enough interest – great for the buyer, but not so great for the seller who was forced to sell at less than the true market value. Sellers who would have previously fallen into these awkward price points will now be able to market their properties at their true market price. It is without doubt great news for the first time buyers who have previously been unable to buy and this in turn will have a positive knock on effect up the chain.
Having looked at the figures, over 98% of all our sales in the past 12 months would have benefitted from the change and paid less stamp duty. But that does leave a valued 2% of our purchasers who would have paid considerably more. Will it have a negative effect on this top end of the scale? It’s impossible to say. What I do know is there are buyers in this category actively looking and with new instructions we are already aware of coming to the market in the new year we will still see plenty of activity in the £1m plus market.
I feel confident this change will have a positive effect on the housing market and with Sowerbys latest office opening in Norwich in the New Year is great news for a good start to 2015.
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