The Chancellor has applied what amounts to an irritant to the top end of the property market. One per cent increase in stamp duty is unlikely to have a significant effect on decisions made by buyers in the £1m+ category, but it may be reflected in prices achieved. Certainly, we will be advising buyers over £1m to bid another 1% less! However, it may have a more substantial impact on the land and development sector where margins are crucial and 1% can make a significant difference.
For cash-strapped first time buyers who are able to raise a deposit, the two year stamp duty holiday will be a welcome initiative. Certainly the raising of the threshold and temporary holiday applied in the past proved a helpful boost to the stagnant bottom end of the market, and we would expect to see an easing of the sector as a result. There is also likely to be a domino effect on the lower middle market which is being restricted by lack of activity at the bottom.
About turn on the cards?
After a slow start to the year, we are now beginning to see a significant improvement in the amount of property coming onto the market. And in many areas the volume of new property is dramatic. Vendors encouraged by reports of buying activity, and in some cases competitive bidding, are jumping in. But just as estate agents think they’ve got it all wrapped up, with enough property to sell, and plenty of buyers waiting for something to buy, the buyer levels are dwindling.
Why? Fear is the underlying factor. There’s a more positive mood surrounding the property market, but there’s a great deal of uncertainty surrounding the economy generally with a General Election looming. Will our finances be squeezed harder than they are now? What’s going to happen to mortgages? And jobs? And salaries? Will the Stock Market plummet for a second time? And will house prices drop again?
But for anyone with a real need or desire to buy, we could well be entering the best buying opportunity for a while. Increased quantities of stock will provide plenty of choice, and will prevent prices climbing. Lack of competition will mean buyers can operate at a sensible pace without being pressured to make instant decisions.
Our advice to purchasers would be to make sure that their finances are in order at an early stage. Find out how much you can borrow, and don’t push yourself too far.
Work on the basis that it’s a buyers’ market and you get to call the shots. There’s no guarantee that new property coming to the market is correctly priced. The vendor may be delusional, basing the value on a mythical uplift in the market; or the estate agent may have over-valued in order to gain the instruction. So proceed with caution and do plenty of research to give you a clear idea of what the market value should be.
Don’t feel you can’t pursue two houses (or more) at the same time. Be open with the agent and the vendor, but there’s nothing to stop you being live on more than one house.
Whatever you buy, negotiate as hard as you can. Generally speaking, prices are unlikely to rise for some time to come. Don’t be fooled into thinking we are in a rising market.
The property market feels as if it has shut down early for the summer. It’s an old excuse – the summer holidays – like the Budget, like the Election, like the Ash Cloud – always an excuse. But something has got to give. There are more vendors and potential vendors entering the...
As expected, the Chancellor did a good job of talking up major cuts and tax rises, before delivering a Budget that was more politically benign. Regarding the property market, Mr. Osborne did not have a lot to say. It looks as if the loopholes that have been used by wealthier buyers to...
There is some detail emerging from the new Con-Lib Government, but uncertainty remains with many as the ramifications of changes and possible changes are chewed over. The market always suffers from reduced activity in times of uncertainty, so there will no doubt be would-be sellers delaying (again) the moment they put...
Where do property values go next? The third and fourth quarters of 2009 and first quarter (to date) of 2010 have seen some considerable recovery in house prices. Market supply is low, borrowing is cheap (if you can get it) and the returns from other investments are poor. The amount of house purchases...
Call us on +44 (0) 1594 842880 or complete the form below
When making probably the most important financial decision of your life, it pays to have the right advisors at your side.
Retirement or semi-retirement is an exciting stage in life. Finding the right home to live in and enjoy it to the full is important. We know that and will do all that we can to understand what you’re looking for… before starting to search. And search we will, until we find the house of your dreams.
Relocating is time consuming and stressful. We regularly work with clients who live abroad. We hunt, short-list, prepare your viewings, and make the search process as easy as possible. We oversee the negotiations, manage the conveyancing, and deal with the headaches, so you can concentrate on other aspects of your move.
A holiday home is often an interesting mix of investment and heartfelt connection. You want to use it, but you may well also be keen for others to use it too. We can advise you on what factors to consider in making your decision. And we can then find the perfect holiday home for you to enjoy.
Others say, ‘location, location, location’. We say, ‘location, purpose, price, capital growth, rental returns’… the list goes on. Knowing the market is critical. Local knowledge is key. We ensure all aspects of your investment decision are addressed. Finding, analysing, negotiating, and completing… it’s what we do.
“You showed fantastic attention to detail, anticipated all eventualities, and provided timely and practical help and guidance every step of the way. Above all, you supported me in making my own considered decisions, and I am so grateful to you for all your help in getting me to where I am now!”
“We firmly believe that without Rachel and her skilled negotiation we would not have secured the property.”
“We felt they genuinely wanted to help.”
“Stacks’ performance on this assignment has been absolutely outstanding and more than met my expectations. Her understanding of the brief and the ‘after-find’ service set a standard of professionalism that I have not met before.”
“It is not often that one is pleased to part with money but I can truthfully say that I am on this occasion. You have earned every penny of this cheque and what is more, you have done it with great courtesy and good humour. It has been very pleasant working with you. You really did take most of the stress out of our house hunting.”
“Encouraging me to think creatively about what could work for me.”
“Finding a plot not yet on the market and persuading the developer to enter into an exclusive contract with me to build to my specification.“
“I was impressed by the efficient, kind and courteous service provided by Stacks”
“Stacks were a tremendous help and we would never have found our home without them. She is a lovely person with a great sense of humour which was essential during some of our tricky negotiations“
“You gave a much-valued ‘younger’ perspective on our situation, which was a real asset”
“We found the service extremely helpful and professional at all times”
“I have been delighted with the service I have received from Stacks and will not hesitate to recommend Stacks in the future.”