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Thread: Corona property prices

  1. #651
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    ^The property market in this country has always been Ďuniqueí but this is now plain batsh*t mental.

  2. #652
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    Quote Originally Posted by PJdB View Post
    Had a chat with an estate agent yesterday - she reckons she has 20 buyers to each house, - they're selling like hot cakes, - can't JUST be the stamp duty which is driving this
    I have heard that said but it doesn't make sense unless we are seeing a huge raft of first time buyers ... given most of the sales will be people moving up/down the ladder there has to be a match of buyers with sellers ...

  3. #653
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    Quote Originally Posted by solwisesteve View Post
    If the aim of the stamp duty holiday was to make it easier for buyers to get onto the ladder - then it hasn't. All it's done is fuel massive house price inflation.
    The Government either donít understand, or wilfully ignore, the impact of interfering with the market.

    And, in any event, SDLT is a huge impediment to the efficient operation of the property market.

  4. #654
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    Corona property prices

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  5. #655
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    I donít think the aim of the SDLT holiday was to encourage guest time buyers, more to get the housing market moving again along with all the additional businesses who benefit from this.

    They includes everything from solicitors and estate agents right accords the board to decorators and gardeners.

    Whenever someone buys a new home, they will almost invariably spend a large chunk of money on making it their home. They also includes new build properties. So for each £15k list in SDLT, the government would eclectic to see a far greater return in VAT, tax and NI contributions.

    There are other schemes designed to help first time buyers, this isnít one of them.

  6. #656
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    Quote Originally Posted by David_D View Post
    The Government either donít understand, or wilfully ignore, the impact of interfering with the market.

    And, in any event, SDLT is a huge impediment to the efficient operation of the property market.
    The issue for an government is that it produces around £10bn a year in revenue. So if you removed it you would need to replace that with some other form of taxation (assuming you wished government expenditure to remain at the same level). Given the amount of support during COVID I don't think it will be going anytime soon

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  7. #657
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    Quote Originally Posted by Taxboy View Post
    The issue for an government is that it produces around £10bn a year in revenue. So if you removed it you would need to replace that with some other form of taxation (assuming you wished government expenditure to remain at the same level). Given the amount of support during COVID I don't think it will be going anytime soon
    Yes, youíre right of course. Itís just that housing isnít used efficiently because, for example, people wanting to downsize when their children leave home are faced with 2 lots of legal fees plus SDLT plus removal costs. So they donít bother and thereís one less 4 bed house available for a family!

  8. #658
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    Quote Originally Posted by David_D View Post
    The Government either donít understand, or wilfully ignore, the impact of interfering with the market.

    And, in any event, SDLT is a huge impediment to the efficient operation of the property market.
    I see it more of: ďYou are making money out of buying and selling houses - we (HMG) want a slice of thatĒ

    Now, While I am not a fan of that - what would the housing market be like without it? Only solicitorís fees to figure?

    Sure - a lot of movement and trickle down to other industries/businesses, but I canít help but think that the short term would be no owned housing for the young, and long term - stagnation due to that.

  9. #659
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    The government, developers and banks make lots of money. Sold houses with inflated prices enable care homes to be paid for. Kids donít vote until theyíre on the housing ladder and then itís Iím alright Jack my house is worth loads Iíll vote Tory.

  10. #660
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    Quote Originally Posted by Maris View Post
    The government, developers and banks make lots of money. Sold houses with inflated prices enable care homes to be paid for. Kids donít vote until theyíre on the housing ladder and then itís Iím alright Jack my house is worth loads Iíll vote Tory.
    True - first time buyers claim to Ďjustí to want to afford a house..............

    but when pressed- you find out that yes, they do want somewhere to live, but to a huge extent - want a place with great investment potential.

    While decrying those who went before - with the same outlook

  11. #661
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    Quote Originally Posted by David_D View Post
    Yes, youíre right of course. Itís just that housing isnít used efficiently because, for example, people wanting to downsize when their children leave home are faced with 2 lots of legal fees plus SDLT plus removal costs. So they donít bother and thereís one less 4 bed house available for a family!
    You may be correct but when we sold our previous house - a 3 bed cottage in the countryside, we had plenty of viewings from "downsizers". None of them made an offer with comments such as great location but hasn't got a farmhouse size kitchen and / or the living room isn't as big as we had hoped.
    Our agent said he despaired of most downsizers; they wanted the big kitchen and living room like their current home but obviously didn't need 4 /5 bedrooms. The problem is a footprint required to give a big kitchen etc usually comes with 4/5 bedrooms

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  12. #662
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    Quote Originally Posted by David_D View Post
    The Government either donít understand, or wilfully ignore, the impact of interfering with the market.

    And, in any event, SDLT is a huge impediment to the efficient operation of the property market.
    Good for BojoÖ. Everyone feels wealthier and that breeds goodwill to the current administration

  13. #663
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    I mentioned before in the thread I photograph property for a local estate agent, the last two owners I had a chat with were both in their later years and both said Covid has made them think about life, they wanted to be closer to their children in other parts of the country so were selling up, nothing to do with stamp duty/money!

    This is for one agent in a small town, I imagine this is repeated much more in the cities across the UK, also I know most conveyancing solicitors are maxed out with work, on top of that the estate agent I work for said it is the best selling market he has ever been involved in..

  14. #664
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    I just had a check on Rightmove and for our area there are no properties for sale within 3 miles - we are relatively rural - over £500k with 10 listed as SSTC

    If that continues it will have a knock on effect pretty soon as there won't be any chains to make

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  15. #665
    I donít get it really - I suspect a lot of people planning to move to the countryside will be in for a shock when the office in London decides to re-open 3 days a week, they realise thereís no such thing as just eat or Uber, their nearest Mongolian BBQ is the one they used to frequent in London, and their mobile signal/broadband is patchy at best :)


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  16. #666
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    Quote Originally Posted by Dave+63 View Post
    I don’t think the aim of the SDLT holiday was to encourage guest time buyers, more to get the housing market moving again along with all the additional businesses who benefit from this.

    They includes everything from solicitors and estate agents right accords the board to decorators and gardeners.

    Whenever someone buys a new home, they will almost invariably spend a large chunk of money on making it their home. They also includes new build properties. So for each £15k list in SDLT, the government would eclectic to see a far greater return in VAT, tax and NI contributions.

    There are other schemes designed to help first time buyers, this isn’t one of them.
    Since November 17 first time buyers pay no SDLT on the first £300k of a purchase - that was rolled out in recognition of how difficult it had become to get on the property ladder. This dopey idea of general SDLT relief has essentially smashed each and every first time buyer as they go from having a competitive advantage (intention of original relief) to having to compete with a stampede of existing owners looking to trade up / down in what can only be described as a feeding frenzy.

    For an existing owner staying invested, it's a simple spread game, so if you have to pay 15% more than last year for your new property but get 15% more on what you sell, the margin has not changed by much. Ultimately those exiting the market will do great, those entering (first time buyers) are being saddled with high debt through frankly excessive prices.

    I've said it before and will say it again - Sunak royally screwed up on this policy. I don't see any immediate significant falls either now as the smart money is on the next base rate increase being Q1 2023 and then to only 0.25%. By then there will be even more people carrying mortgage debt well beyond their true means. Prices should at least stabilise beyond June as the relief starts to taper and more people learn they don't have a job once the support packages are withdrawn too.

  17. #667
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    All of which confirms my point that the SDLT holiday was not in any way aimed at making it easier for fist time buyers.

    Two of my daughters have recently bought their first homes, one paying £315k within the holiday window and the other £305k before the holiday. So between them, they paid a total of £250 SDLT.

  18. #668
    I moved house in summer 2020 and was lucky enough to benefit from the stamp duty holiday, saving £15k (the purchase was well under way before the announcement).

    When the first lockdown was lifted there was a huge jump in demand for properties, before the stamp duty cut was announced. I donít think they needed to do the reduction and the market would have remained buoyant anyway.

  19. #669
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    Quote Originally Posted by thestore View Post
    I moved house in summer 2020 and was lucky enough to benefit from the stamp duty holiday, saving £15k (the purchase was well under way before the announcement).

    When the first lockdown was lifted there was a huge jump in demand for properties, before the stamp duty cut was announced. I don’t think they needed to do the reduction and the market would have remained buoyant anyway.
    The real estate market is much too unstable at the moment I guess to decide to buy a new house. Lots of people are talking about the coming crisis but I am not sure that these talks are not of speculative nature.
    Last edited by Owren; 11th June 2021 at 09:45. Reason: spelling

  20. #670
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    Notable slowdown in properties coming onto the market. Not expecting any great fireworks, but I suspect things will at least be static for a while now that it's too late to come to the SDLT savings party and that will probably signal the end of some of the silly bidding wars with people queuing outside a house to be next in line to view...

  21. #671
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  22. #672
    Quote Originally Posted by Estoril-5 View Post
    Not me, but does that take into consideration the equity you are gaining by paying a mortgage?

  23. #673
    Quote Originally Posted by Estoril-5 View Post
    I rented in London from 2000-2013, I lived in 1 or 2 bad flats from budget to somewhat premium.

    At no point have I ever paid more rent that the interest on the same property would be if I bought it.

    I only bought because I had particular needs that were hard to find on the rental market.

  24. #674
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    Quote Originally Posted by jammie*dodger View Post
    Not me, but does that take into consideration the equity you are gaining by paying a mortgage?
    The equity point is irrelevant, to release equity you need to remortgage which means higher payment, or to take credit of the complete equity you have to sell which means you will have to rent/buy again.

  25. #675
    Quote Originally Posted by Estoril-5 View Post
    The equity point is irrelevant, to release equity you need to remortgage which means higher payment, or to take credit of the complete equity you have to sell which means you will have to rent/buy again.
    It matters if you buy with a 17% deposit and after your initial term you now have 20% equity that puts you into a different rate which can reduce the mortgage by quite a bit and gives you more options with lenders.

    Remortgaging won't always mean releasing equity. Can just mean getting a better rate.

  26. #676
    I understand that but sooner or later that money is yours (or the beneficiaries of your estate) rather than the landlords? Hard to divorce the 2 given one means you have an asset while the other doesn't.

  27. #677
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    Quote Originally Posted by wileeeeeey View Post
    It matters if you buy with a 17% deposit and after your initial term you now have 20% equity that puts you into a different rate which can reduce the mortgage by quite a bit and gives you more options with lenders.

    Remortgaging won't always mean releasing equity. Can just mean getting a better rate.
    Agreed (unless the value of your property declines). The crux of it is, in the middle of a pandemic, business struggling, house prices have shot up to levels where the rhetoric of mortgaged vs rented has switched, part of which has been prompted by the SDLT holiday

    Quote Originally Posted by jammie*dodger View Post
    I understand that but sooner or later that money is yours (or the beneficiaries of your estate) rather than the landlords? Hard to divorce the 2 given one means you have an asset while the other doesn't.
    They're not mutually exclusive but it does fall back to an individuals perspective, is where you live an investment or a basic need (or both as the case may be).

  28. #678
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    Many will be forced to rent as they simply won't pass the financial tests for the mortgage they need, despite having sufficient disposable income to service the debt because interest rates are so low. A sad situation, but I'm glad the financial tests are being applied as it will equally save many down the line when rates inevitably increase at a level that far outstrips wage growth and suddenly the mortgage payment becomes unaffordable.

    I think rents will start to edge back up as many BTL investors have taken the opportunity of a strong market to sell to owner occupiers, so increased demand and diminishing supply should push rents up.

  29. #679
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    Property prices in Chelmsford and Suffolk have gone up considerably over the last 18
    months and no signs of slowing down as people exit London for greener spaces and bigger properties. A lack of needing to be in London and close to work for 5 days a week is having a significant impact. Our surveyor said houses are selling for over listed prices and estate agents are having to put Ďoffers in excess of xxxí. We just went through a remortgage and our house value has increased by 10% in two years. I am very glad that we bought our first house 2 years ago or like many have said we would be struggling to get a house we would want where we live.

    I feel sorry for people looking to get on the property ladder as it was already hard and now itís even harder.

    Stu

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