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RICS survey very negative in SE

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2 hours ago, Grab_Some_Popcorn said:

Good to hear that on prices "London remains firmly negative, while the price balance in the South East also remains negative (but to a lesser extent than London) for a fourth consecutive month."

Sounds like its on track for YoY negative nationally by the time we hit 2018.

And London rents are also still firmly in negative YoY territory. All good!

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Rents tumbling in London, will filter out to the SE. Lots of people renting in SE but commuting into london would probably rather live in london... these falling rents will suck people out of the shires. Ditto for house prices.

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There does seem some special pleading going on at the moment before the budget - many outlets are pushing for either:

- Remove Stamp Duty for 1st time buyers (possible? likely?)

- Remove 2nd Home Stamp Duty (can't imagine that changing)

- Cut Stamp Duty (probably not)

Will see in the budget whether they do any of them - but given the limp wristed announcement of more H2B, can't imagine the Tories taking much action and will likely just leave as is.

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And straight from the @rse's mouth:

Tosh:

Quote

Edward Rook, MRICS, Sevenoaks, Knight frank, edward.rook@knightfrank.com - Stamp duty stalling the market.

Ha ha:

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Mark Everett, FRICS, Epsom, Michael Everett & Company, www.michael-everett.co.uk, markeverett@michael-everett. co.uk - The anticipated seasonal pick-up is still awaited. A few more instructions and a little more buyer enthusiasm, but nothing like we had hoped for or expected. We could do with some positive news to kick start the market.

On the right tracks:

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Michael Brooker, FRICS, Crowborough, Michael Brooker Estate Agents, 01892 663377 - No autumn “bounce”. Households stretched. Brexit concerns lack of confidence.

No sh1t sherlock:

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MJS, AssocRICS, Dover, Matthew Smith Surveying, 07790013904, mjsmithltd@ hotmail.co.uk - Property prices seem uncorrelated to the wages available locally suggesting that the market is dependent upon buyers from outside of the area

Crashy crashy

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John J.King, FRICS, L.B.Merton, Andrew Scott Robertson , 020 8971 6780, www.as-r.co.uk, jking@as-r.co.uk - Middle market family houses between £900- £1.5m remain the most popular. Viewing figures are constant but extracting offers remains key as buyers now see their position as being firmly in the driving seat.

Tiiiiiiiiiiiiiiiiiiiimbeeeeeeeeeeeeeeeeeeeerrrr

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Simon Aldous, MRICS, London, Savills, 02070163861, savills. co.uk, saldous@savills.com - Prices across prime London continue to soften, perhaps down 1 to 2 % over the last 3 months. Price falls have been greatest in central London at the top end of the market, probably back close to 2012 levels.

 

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This is where I agree with EAs - stamp duty is stalling the market, although not as much as exorbitant prices. Anyway, I think taxing activity (as opposed to taxing wealth to redistribute it) is unreasonable.

I'd sign with all my limbs a petition to scrap SDLT altogether, if it's accompanied by a proper land value tax, possibly with progressive rate for any properties other than main residences. Or I would ban possession of more than one residential property for all individuals, and companies owning residential properties would only be allowed to let them out to their own employees. SDLT would have to go in both scenarios, it's nothing but a money grab.

Edited by kibuc

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5 minutes ago, kibuc said:

This is where I agree with EAs - stamp duty is stalling the market, although not as much as exorbitant prices. Anyway, I think taxing activity (as opposed to taxing wealth to redistribute it) is unreasonable.

I'd sign with all my limbs a petition to scrap SDLT altogether, if it's accompanied by a proper land value tax, possibly with progressive rate for any properties other than main residences. Or I would ban possession of more than one residential property for all individuals, and companies owning residential properties would only be allowed to rent them out to their own employees. SDLT would have to go in both scenarios, it's nothing but a money grab.

Stamp duty can be negotiated away in the blink of an eye.

 

There are plent of places in RM being dropped by the cost of stamp duty x 20.

I call B.S.

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13 minutes ago, kibuc said:

This is where I agree with EAs - stamp duty is stalling the market, although not as much as exorbitant prices. Anyway, I think taxing activity (as opposed to taxing wealth to redistribute it) is unreasonable.

I'd sign with all my limbs a petition to scrap SDLT altogether, if it's accompanied by a proper land value tax, possibly with progressive rate for any properties other than main residences. Or I would ban possession of more than one residential property for all individuals, and companies owning residential properties would only be allowed to let them out to their own employees. SDLT would have to go in both scenarios, it's nothing but a money grab.

If house prices reflected wages, stamp duty would be minimal.

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But it still would be there, and I don't see a reason why it should.

Yes, as @TheCountOfNowhere said, it can be negotiated away, but if it wasn't there to begin with, you would be negotiating away some part of the purchase price instead.

In it's current, progressive implementation it might serve as a redistributor of wealth (supposedly-wealthy buyers of high-priced properties pay disproportionately more), but it only kicks in when the property changes hands, hence it's negative impact on market volumes. On the other hand, land tax, while redistributing wealth at least just as efficiently, wouldn't have adverse impact on activity. If anything, it could help push volumes up, as people might be interested in optimizing their tax obligations by selling down.

BTW, 'disproportionately' is a bitch to spell.

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Anon, FRICS, South Devon - Banks closing branches, B&Q closed and Toys R US plus others about to which is causing more repossessions and a drag on the market and prices. People are frantically mortgaging to clear car nance etc and are nervous about the next bank crisis/recession. 

 

 

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1 minute ago, mathschoc said:

Anon, FRICS, South Devon - Banks closing branches, B&Q closed and Toys R US plus others about to which is causing more repossessions and a drag on the market and prices. People are frantically mortgaging to clear car nance etc and are nervous about the next bank crisis/recession. 

 

 

People remortgaging to clear car finance... House of cards.

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The 'problem' (not sure it's actually a problem) with Stamp Duty is that it has to be paid - cash (not pretend paid). This is a serious headache for people addicted to buying things on future earnings rather than historical.

Also, because it is cash, it has to be taken out of the deposit rather than the purchase price. Thus each £1 of stamp duty equates to ~£5 of purchase price.

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  • 293 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% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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