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Will a £12,500 “haircut” be the norm for the £500,000 property?
There is always a direct reaction to any action that takes place, never more so in the property world. For a large amount of time, buyers buying at £500,000 have enjoyed an SDLT saving of £15,000 thanks to the Chancellor.
As of the 1st of July, that £15,000 SDLT saving will now just be just a £2,500 saving for those who qualify. So, the elephant in the room is this – will the next generation of buyers looking at a £500,000 property be offering £487,500 to factor in their loss?
This may seem unlikely, but I remember well when certain SDLT thresholds made it hard to achieve over £60,000 or £250,000, as it would incur a steep charge in SDLT.
More to the point, as this £12,500 loss sinks in, might this mean that buyers not yet exchanged will be ringing the agent to ask for a discount on their purchase price?
They think it is all over…it is now
Some solicitors and conveyancers were reporting triple volumes of completions on the last Friday of June, as happy (and not so happy) buyers picked up their keys and took possession of their new abodes.
Today, talking to a number of solicitors, there was a sense of relief and even the odd smile as though a huge cloud had been lifted. Maybe the Hancock fiasco kept the nation’s mind on other things this weekend.
Dexters shows huge gross profits after an exceptional year
In what has been the craziest housing market in my 37 years of being in the business, the London-centric agency Dexters had made a gross profit of over £53million in its last accounting period, ending Q3 2020. It will be interesting to see what the SDLT holiday has done to their bottom line, come the end of September this year.
None of the other property trade publications mentioned Boomin, so I thought I would. It probably is me, but I do love their adverts, especially the nun. Sometimes being the new kid on the block gives a company a strategic advantage, establishing its new brand, new audience, and new service, rather than trying to change all of these.
Andrew Stanton is the founder of Proptech-PR, a consultancy for Founders of Proptechs looking to grow and exit, using his influence from decades of industry experience. Separately he is a consultant to some of the biggest names in global real estate, advising on sales and acquisitions, market positioning, and operations. He is also the founder of Proptech-X Proptech & Property News, where his insights, connections and detailed analysis and commentary on proptech and real estate are second to none.