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I've been browsing around keeping tabs on house prices in my area. There is obviously an effect at the £250,000 stamp duty threshold. My question is - what effect does this have on asking and selling prices?

Do buyers try to place it just above the threshold, knowing that only a small reduction in selling price will result in a bigger saving for the buyer, who then has got a "bargain"? Or do we find that there's no-go pricing area above 250,000?

Are there any buying strategies around this critical mark? I ask, not because I can quite afford property at this level just yet, but because the only places I have seen I could consider living in have been rapidly approaching, or exceeding that threshold.

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I've been browsing around keeping tabs on house prices in my area. There is obviously an effect at the £250,000 stamp duty threshold. My question is - what effect does this have on asking and selling prices?

Do buyers try to place it just above the threshold, knowing that only a small reduction in selling price will result in a bigger saving for the buyer, who then has got a "bargain"? Or do we find that there's no-go pricing area above 250,000?

Are there any buying strategies around this critical mark? I ask, not because I can quite afford property at this level just yet, but because the only places I have seen I could consider living in have been rapidly approaching, or exceeding that threshold.

Got it bang on there. Another problem is it works against the buyers. You would have seen LOTS of properties around the 120>125K mark before it went up. there properties have no been UPPED to £125>130K with the higher stamp duty. So when GB says he is helping FTB's with stamp duty, he is actually screwing them out of more money. Thanks GB your a tw@t!

TB

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I suspect that buyers will look at properties up to the current threshold on many property websites so going above that will limit the number of viewings.

In any event it is quite easy to structure the deal to avoid going over the threshold.

£10k for curtains and carpets anyone?

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I'm looking forward to the "positive" effects of the thresholds when the market starts dropping. It's quite ridiculous to see no properties for sale in the £250-290 range or £500k-£580k. These are all cynical attempts to avoid dropping below the threshold and artificially push prices up. Think of the thresholds as a magnetic repelling house prices away. When prices start dropping the thresholds will have an attractive magnetic effect and drag prices lower more quickly than would otherwise have beent the case. Yes, it's pants when there's HPI, but when prices are falling it should act as an accelerator. Of course, those thresholds could be mysteriously removed should prices start dropping significantly.

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Stamp Duty Threshold Chasm Effect.

See 'Stamp duty thresholds and their effect on prices.':

http://www.housepricecrash.co.uk/forum/ind...showtopic=13099

Very interesting, thanks. I must remember to search the forum sometimes. Maybe this is the kind of thing that could be put in the Wiki?

I wonder what good negotiating tactics would be for a property with an asking price of around the £265K mark? If I wanted to put in a lower offer - say 90% asking price, that would take the property below the threshhold - good for me, but I'm sure the vendor would happily point out how much extra I was saving by doing so. Seems like it gives them some additional bargaining power.

Does anyone have any experience of negotiating around this price point?

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Sort of relevant

My house falls in an area that is exempt from stamp duty. When you are buying solicitors, EA's and even sellers can overlook this point so its worth doing a check yourself, visit this site, all you have to do is put in the post code to find out if the house you are looking at falls in an exempt area.

http://www.easyconvey.com/stampduty/default.asp

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My house falls in an area that is exempt from stamp duty. When you are buying solicitors, EA's and even sellers can overlook this point so its worth doing a check yourself, visit this site, all you have to do is put in the post code to find out if the house you are looking at falls in an exempt area.

http://www.easyconvey.com/stampduty/default.asp

Another good one fpor the wiki - nice link

TB

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  • 301 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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