Yet another stamp duty deadline looms for Newark and it is difficult to see what will happen to the marketplace beyond this point. The stamp duty deadline has no doubt boosted the market, buyers like to take advantage of the significant financial benefit and sellers eye an opportunity to get extra for their property knowing demand has increased as a result.
Hilary Osborn of the Guardian reports:
“UK property prices are set to continue to rise after the gap between demand for homes and supply grew to its widest level since 2013, surveyors have reported. The group said that upwards pressure on prices had intensified for the fourth month running, with the stamp duty holiday in parts of the country one of the factors driving demand. It said estate agents were still reporting increases in the number of new sales agreed, as buyers tried to beat the beginning of the phasing out of the tax break at the end of June.
After that date buyers in England will pay tax on the value of purchases over £250,000. RICs said that while its members had reported an increase in inquiries from new buyers in May, “new instructions coming on to the market have become increasingly scarce over recent months”. As a result, the gap between inquiries and instructions was at its widest since November 2013.
RICs said agents expected more properties to come on to the market over the summer, and the phasing out of the stamp duty holiday to lead to a slower rise in activity. Simon Rubinsohn, chief economist at RICs, said: “Ending a tax break always has the potential to be a little disruptive for a market but with the economy performing better than could have been expected even a short while ago and the cost of money still at rock bottom levels, the principal drivers supporting demand will remain in place even after the expiry of the stamp duty holiday.”
I can’t help thinking that a proportion of sales will fall through that fail to make the deadline and many more will be renegotiated due to the additional costs being brought to bear on the buyer. It will be interesting to see what happens once the stamp duty holiday ends as it appears many transactions have been brought forward as a result.
If your deal is on the verge of collapse as the stamp duty deadline looms for Newark and you need a fair price for a fast sale, then contact us and we will get on the case straight away.