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Is there info on what kind of buyers are out there?


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Complete anecdote but i've seen a few times during this current boom properties in auction fail to get a single bid then sell instantly when they are subsequently offered through an agent as part of a regular sale.

I actually viewed one such place and the EA told me the auction only had 2 viewings but the regular sale had already received 1 offer and had an additional 9 viewings after me. This house is now SSTC. 

What do I infer is going on here? Auctions attract LLs who get all competitive and keep bidding until they win. This time it seems to be OOers, who wouldn't be able to raise finance for an auction purchase as they're dependant on their own sale.

That's my theory anyway, and it seems to align with their rush to complete before the stamp duty holiday. An auction purchase would almost certainly make the tapered relief in time but the buyers simply don't have the monies to do it this way so prefer a regular sale. 

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2 hours ago, sammersmith said:

Complete anecdote but i've seen a few times during this current boom properties in auction fail to get a single bid then sell instantly when they are subsequently offered through an agent as part of a regular sale.

I actually viewed one such place and the EA told me the auction only had 2 viewings but the regular sale had already received 1 offer and had an additional 9 viewings after me. This house is now SSTC. 

What do I infer is going on here? Auctions attract LLs who get all competitive and keep bidding until they win. This time it seems to be OOers, who wouldn't be able to raise finance for an auction purchase as they're dependant on their own sale.

That's my theory anyway, and it seems to align with their rush to complete before the stamp duty holiday. An auction purchase would almost certainly make the tapered relief in time but the buyers simply don't have the monies to do it this way so prefer a regular sale. 

This implies to me fragile time-limited chains

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5 hours ago, sammersmith said:

Complete anecdote but i've seen a few times during this current boom properties in auction fail to get a single bid then sell instantly when they are subsequently offered through an agent as part of a regular sale.

I actually viewed one such place and the EA told me the auction only had 2 viewings but the regular sale had already received 1 offer and had an additional 9 viewings after me. This house is now SSTC. 

What do I infer is going on here? Auctions attract LLs who get all competitive and keep bidding until they win. This time it seems to be OOers, who wouldn't be able to raise finance for an auction purchase as they're dependant on their own sale.

That's my theory anyway, and it seems to align with their rush to complete before the stamp duty holiday. An auction purchase would almost certainly make the tapered relief in time but the buyers simply don't have the monies to do it this way so prefer a regular sale. 

This is consistent with the following:

 

 

 

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However

https://www.telegraph.co.uk/property/buy-to-let/landlords-trolley-dash-stamp-duty-savings-disappear/

"Investors made up 12pc of all buyers nationally in June, up from 10pc in May. The share of landlord buyers rose month-on-month in eight out of 11 regions in Britain.

 

Investment activity was most heavily concentrated in the North and Midlands, where lower values mean a larger share of homes benefit from the biggest tax savings in proportion to house pric

 

Yorkshire and the Humber recorded the biggest jump in investor purchasers, who accounted for 21pc of sales in the region in June, up from 11pc in Ma

 

It was followed by the North East, where the share rose seven percentage points to 18pc, and the East Midlands, where it was up six points to 17p

 

In Wales, however, the investor share fell for the fifth consecutive month to just 3pc. Landlord numbers have dwindled consistently because the equivalent land transaction tax holiday did not apply to those purchasing additional properties. Wales also introduced a higher four percentage point surcharge for those buying second homes and investment properties in December 2020."c.y.e.er 2020.

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45 minutes ago, Si1 said:

Yorkshire and the Humber recorded the biggest jump in investor purchasers, who accounted for 21pc of sales in the region in June, up from 11pc in Ma

 

Rental property purchased by LL are typically in the £250K or lower range outside London so it's not a huge surprise these people are buying post-500K stamp duty holiday. Also, around ~20% is what i assumed was the proportion of landlord buyers in normal times. It may be double the previous month but over the year it'll probably even out.

LLs were always going to buy into this if they can save £2.5K a couple of times. That probably represents a years profit for many. 

Edited by sammersmith
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