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worried1

Evening Standard Last Night

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The front page of the Standard last night had an article about how there was a rush to get £1m house sales completed before the increase in stamp duty.

http://www.thisislondon.co.uk/standard/article-23939061-house-sales-rush-to-beat-tax-rise-frenzy-in-london-sparked-by-stamp-duty-increase.do

The funniest bit came at the end of the article:

One couple who beat the deadline said the £13,000 they saved in tax made their dream home affordable. Account manager Michelle Shepherd, 35, and her banker husband Duncan, 37, who have two children, were looking to move from Twickenham to Surrey.

Ms Shepherd said: "We were acutely aware of the ticking stamp duty timebomb. We found a buyer who was offering £990,000 for our house. We then offered £1,290,000 on a house in Walton-on-Thames, where the asking price was £1,495,000.

"Happily it was accepted, as the developer also realised the stamp duty issue. We managed to complete on both sales on April 1. Saving the stamp duty was crucial, we simply didn't have that extra £13,000.

I am sure that she is stretching the truth a bit, but I can't believe that a relatively well-off couple would put themselves at risk by spending everything on upgrading from a £1m to £1.3m house.

I could understand someone stretching themselves to get to a modest first step on the 'ladder', but surely you would save a couple of hundred thousand for a rainy day if you were in their position?

No wonder we are in this mess.

Edited by worried1

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How are people that are moving to a 1.3 mill house so poor that they don't have 13k kicking around?

Don't know why they offered £1,290,000. I'm sure they would have had an offer accepted at £1,275,000. Then they could have completed today and still be £2K to the good ;)

I suspect they are exaggerating about the £13K. They could get that by selling the 4X4.

Anyway, when prices drop by 10%plus they'll not be worrying about the £13K saved.

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Interesting. It is not a great house. Walton is an ok area, but has traditionally been for people who can't quite afford Weybridge, Cobham or Esher.

It seems to have been 'promoted' lately since they built a small shopping/flats complex beside the main 1970's concrete precinct. I am not sure why if this really makes any difference, and I'd probably stick to one of the surrounding towns that are likely to be slightly more resilient to a crash.

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Don't know why they offered £1,290,000. I'm sure they would have had an offer accepted at £1,275,000. Then they could have completed today and still be £2K to the good ;)

I suspect they are exaggerating about the £13K. They could get that by selling the 4X4.

Anyway, when prices drop by 10%plus they'll not be worrying about the £13K saved.

I'd be more worried about the banker husband's job. I doubt they could support the type of mortage they are likely to have on her salary alone.

I live slightly north of this 'banker belt'. The prices there are ludicrous, but I thought that they were safely supported by the bankers bonuses. If there are many people in this type of highly leveraged position, the prices there could be very fragile indeed.

Saying that, I am making the assumption that they have got a mortgage at all. She may have meant that they did not have another £13k unless they got a mortgage. That would be a very nice position to be in, but I doubt it is the case!

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Interesting. It is not a great house. Walton is an ok area, but has traditionally been for people who can't quite afford Weybridge, Cobham or Esher.

It's sad that you don't get a great house for £1m plus in the suburbs. Evening Standard always makes me laugh. They had a 3-bed mews for over £5m the other day in an article. I'm amazed they think anyone who would be buying that would be picking their freebie paper up for the bus/tube journey home!

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Yeah but the telly says, a lick of paint, add some cushions and it'll worth £2 million!

Don't forget the smell of coffee or vanilla! What about neutral colours and decluttering?

The fact is that the price of land upon which tiny properties may sit is at a balmy price. You only have to look at homes compared to incomes in countries where the lending was not totally mad. Even France, even Germany, even Brazil. Why are we so stupid here?

The IMF has come out agreeing with most of us on this site today. Multiples of income leant are crucial to the likely price of homes. IN THAT CASE CONTROL THEM FOR EVERYONES SAKE!!! Just imagine a world where I had been in charge since 1997 and the law was that NO lender was allowed to lend more than 2 x income and no lender could allow remortgage for consumption - only improvements to home or extensions? YOU WOULD HAVE A STABLE FUNCTIONING PROPERTY MARKET TODAY. One in which normal working people of about 30 yrs old could afford a terrace or semi without fear of bankruptcy; where only 20-25% of their income would ever be needed to purchase at IR's of up to 10%.

Mr Shapps never replied to my letter pointing out the folly of the current rediculous policy he wants to follow. They just think that the housing market suppoorts the economy and therefore a fall in price is bad. Well, the Housing benefit bill would go down over time as values reduce along with rents. Normal interest rates would mean people have the interest on savings they deserve and can spend in the economy to name a few helpful effects.

I am getting more concerned the coalition do not have much of an idea what they should be doing except to cut expenditure, which they are right to do. So many stupid decisions now - Rant..rant rant.....better stop!

Edited by plummet expert

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...plastic, with black kitchen work tops no views apart from a panel fence and leylandii......can think of only a few things that are worse.....where was that depression thread? :P

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It's sad that you don't get a great house for £1m plus in the suburbs. Evening Standard always makes me laugh. They had a 3-bed mews for over £5m the other day in an article. I'm amazed they think anyone who would be buying that would be picking their freebie paper up for the bus/tube journey home!

It is sad, but there is a lot of money pouring into that area from bank bonuses. In tis bubble. this house would be about right for £1.3m in Esher, but in Walton it should be no more than £1m.

Not so sure about the readership point - I'd have thought most people get the tube or cabs in London regardless of income. Just because the owner of a £5m could afford car parking fees doesn't make it any less hassle to drive and park in London.

Certainly, the owners of £2m+ houses in the Surrey suburbs get the train out of Waterloo each night - it is the only way to do it unless they want to employ a driver. A lot could afford it, but I bet most don't do it.

I occasionally read the property section in The Times, and it is exactly the same - most of the articles are about houses over £1m that only a tiny minority of people would ever be able to afford.

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Not so sure about the readership point - I'd have thought most people get the tube or cabs in London regardless of income. Just because the owner of a £5m could afford car parking fees doesn't make it any less hassle to drive and park in London.

I understand the £1m-£2m houses for affluent commuters, but someone looking to spend £5m in central London is not going to be looking in the Evening Standard for a house.

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It is sad, but there is a lot of money pouring into that area from bank bonuses. In tis bubble. this house would be about right for £1.3m in Esher, but in Walton it should be no more than £1m.

Not so sure about the readership point - I'd have thought most people get the tube or cabs in London regardless of income. Just because the owner of a £5m could afford car parking fees doesn't make it any less hassle to drive and park in London.

Certainly, the owners of £2m+ houses in the Surrey suburbs get the train out of Waterloo each night - it is the only way to do it unless they want to employ a driver. A lot could afford it, but I bet most don't do it.

I occasionally read the property section in The Times, and it is exactly the same - most of the articles are about houses over £1m that only a tiny minority of people would ever be able to afford.

I've often wondered how it is that across large swathes of SW London each house is over £1m.

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I've often wondered how it is that across large swathes of SW London each house is over £1m.

I personally think it is an age thing rather than vast numbers of bankers - 40-somethings. People in their 40's have often bought places 10 years ago or more, starting with flat (sold for £200k say a few years later), then onto first house (sold for say £6-700k), and the £1m+ houses are their next step. They have benefited massively from HPI, and often there are two of them who have done so - couple get together, both own flats, buy house. I have seen quite a few people do this. Of course, those following them can no longer do this so it's just a matter of time before it all comes to a halt (if it hasn't done so already).

FWIW, a friend of mine has just moved to Surrey having sold in West London. Their child is booked into a private school in Guildford to start in September :rolleyes: . Apparently several of the other parents there who already had their kids booked to start at the school were fretting that they were unable to sell their houses in West London and hence unable to move as they expected.

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I personally think it is an age thing rather than vast numbers of bankers - 40-somethings.

I suppose so, but it would still only be a tiny proportion of the non-banking fraternity that would actually be able to buy at these prices.

If a couple earning, say, £80k between them at age 45 find themselves in a house that has gone up in value from £100k when they bought it 20 years ago to £600k now, it is still going to be a big ask for them to upgrade to a house worth double that. They would not get the mortgage. That is why a lot of people take the £600k out of London to Guildford etc where they can get a much bigger place for not much more money.

The reason that all of the nice parts of London and Surrey are dominated by £1m+ houses is that there is so many people that can come along and afford to pay that for them. Most of the people living in them will have done so for many years and would have absolutely no hope of buying their own house now.

I appreciate that there are a lot of non-Banking families that earn £200k+, but it must be a very small proportion.

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  • 312 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
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      • Even
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      • up 5%



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