Will stamp duty changes push up house prices?
According to estate agents there has already been a positive reaction to the changes in the stamp duty costs. Agents have reported that buyers have already been on the phone puting the stamp duty savings into higher priced homes.The news has already had an impact on the market as buyers increase their budgets which in turn will lead to higher prices. Anybody buying a home up to £937,000 will have made a saving on the stamp duty they would have paid. The old "slab structure" has been abolished in favour of the new progressive tax. This has been welcomed by everybody particularly those buyers looking to buy at just over £300,000. These buyers will be making the biggest savings.
Many agents said that they had already agreed sales that were going nowhere before the changes. Sales that could not be agreed because the buyers and sellers were £5,000 - £10,000 apart have now been agreed. This is good news for homeowners and buyers alike. The old tax was crippling many buyers and was seen as hampering the market and also seen as unfair. The new tax regime will really benefit property sales up to £937,000 which is around 80% of all property sales across Britain. The Chancellor George Osborne will be very pleased with himself as he appears to have stolen the thunder of the Labour Party who have agreed the changes were well overdue.
There had been a recent lull in the housing market as buyers took stock of the situation with significant price increases having taken place over the last 12 months. The property market also goes quirt during a general election as buyers and sellers wait to see how any new government will affect them. This may all go out of the window as the Bank of England recently announced that interest rates could be on hold until the end of next year and the government continues to support the property market and believes a strong housing market is key to a stronger economy.