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Skipton Crash

Stamp Duty Changes Starting To Bite

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Briefly, a work colleague is in the process of selling his house and the buyer, a cash buyer agreed a price that was near enough the same as the asking price. The buyer has contacted my colleague to say that he is going to have to withdraw his offer as he can no longer afford it. Apparently, the buyer was unaware of the stamp duty changes for second homes! There were loads of people interested at first and it is actually a really nice house, but it seems all of the potential buyers have rapidly evaporated!

Meanwhile, my landlord is selling up and I am seeing prices already starting to slide in North Yorkshire. I only deal with the landlord through the letting agent but there really seems to be a lot of urgency on the sale (and hence, the getting rid of me). I had an estate agent round here to value the place so I was sure to point out absolutely *all* of the many defects, and got into quite a frank discussion with him... he reckons the changes will have a "big effect round here on the supply of rental properties" which I took as a euphemism for landlords selling up in droves and a flood of supply, driving down house prices....

Hold on guys, this could be the big one!

Interesting times :)

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How long will it be until people were unaware of the change to +3% stamp duty?

Over the last few months the typical idiot trying to get into BTL was presumably warned about the impending deadline. Those who couldn't complete before April will probably give up, just finding the increased stamp duty too hard to stomach.

But the typical idiot getting into BTL now may just assume there was always a 3% surcharge for second homes. And as he knows BTL guarantees riches, he just shrugs at the cost of stamp duty and proceeds.

I suppose the question is whether there really are enough idiots to keep the ponzi scheme going.

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It is hilarious that so many would-be leaches rushed to beat the stamp duty deadline, not realising that prices were bound to go down by at least the amount of the stamp duty once the deadline passed. The trouble with the typical BTLer is that they're so stupid that a lot of them will probably try to 'catch a falling knife' whilst the market is correcting. This of course will slow down the correction. Another irony here is that many landlords are claiming that BTL is a business and therefore they should be entitled to tax relief on their mortgage interest. The fact is, the majority of BTLers are not savvy enough to run a business, and this fact alone should be enough to counter their arguments !

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I know of one landlord who also works in oil and gas (!) who despite being given every warning imaginable regarding the future of his job has bought ANOTHER BTL. Rushed through pre April deadline to avoid stamp duty.

Can't go wrong with property apparently.

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I know of one landlord who also works in oil and gas (!) who despite being given every warning imaginable regarding the future of his job has bought ANOTHER BTL. Rushed through pre April deadline to avoid stamp duty.

Can't go wrong with property apparently.

This wasn't a BTL in Aberdeen - was it :ph34r:

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