Now the dust has settled on the August Statement, people are starting to look at in in a more analytical way. When the abolition of stamp duty for property priced below £300,000 was announced, the initial reaction was positive. It can be very difficult for first time buyers to make their way on to the property ladder so anything which provides them with assistance will be seen as a positive thing.
Of course, it didn’t take long for opposition to surface. The Office of Budget Responsibility were quick off the mark in raising concerns about the change. The organisation raised concerns that this may actually lead to property prices rising, with an increase of 0.03% being stated. This has been likened to a like for like movement, so there may be no change for buyers and some experts have suggested that buyers will be paying more.
There are positive and negative points to consider
This is a blow but there is an argument that buyers will need less money up front and this may lead to buyers having more money to use as a deposit. This is definitely something to be seen as a positive step, because this can make a difference to the mortgages on offer for the buyer. In this regard, there has been a lot of support for the move being of benefit to people who don’t have a large deposit or who are on low income. In this regard, there may be positivity for first time buyers thanks to the Autumn Budget announcement.
There is also the fact that existing home buyers may do quite well out of the situation. If house prices rise, these people are going to receive more money when they sell their home, which will definitely be a positive thing. Then again, when people sell their home, they more often than not buy another home, so they will likely end up paying more here. In this regard, only people selling up without having to worry about buying a new home are likely to benefit.
As with most things in the property market, there are various arguments to be made about the movement relating to the theory. It will only be when the market reacts to actual changes that we will see the full extent of the impact of the abolition of stamp duty for first time buyers. This is something we will keep an eye out for at Spencer Harvey.
We are Stockport property specialists, and this is why so many local homeowners call on us to provide them with the support they need to sell their home with the greatest of confidence. You can give Spencer Harvey a call on 0161 480 8888 or send us an email at info@spencerharvey.co.uk. For a free valuation please visit: https://www.spencerharvey.co.uk/valuation-enquiry.html