Do You Think Property Prices Will Drop After Stamp Duty Is Increased Again?

Brett Alegre-Wood
November 2, 2020

Stamp Duty and Property Prices

I think what the Stamp Duty has done is it will get us through the Winter months and will keep buoyancy in the market so when the Spring bounce comes the market will pick up again.

Q: Do you think House Price will drop after stamp duty has increased again? 

Good one, awesome question actually and we get a lot of people asking this question right now. Do we have to rush the problem we've got right now is, we've had actually and we've had a rush and the rush has continued.

Everyone was thinking it would taper off and it has tapered off a bit but not as much as you know it's not dropping like this. What it means is the pipelines now are full, so if you want to get mortgages you're going to struggle to get mortgages, they're going to take longer.

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It's a very different market in Scotland, it's a smaller market. There's some fundamental changes namely oil and gas with all the issues there and that I know Aberdeen and a few of those places house prices have dropped considerably. So, it depends on how that's reacted.

If you want solicitors if you want all these processes you need to go in and get those and that's one of the issues right now. Will that mean that stamp duty sorry prices increase drop after stamp duty drops, look I don't think stamp duty is that much of an incentive now.

Yes, it's an incentive for people who want to sell, to sell. It's an incentive people who want to buy, to buy. It's been a great thing from that perspective but it's only you know it's for a limited period. 

And yes do I think prices will drop?  NO, I think what it's done is it's got us through the winter months and I think that is above all the key thing here. It will keep some buoyancy in the market over the winter months so that when we hit that spring bounce that we call it in March-April every year that's the time which then the bar you know the stamp duty will drop away and the market should pick up.

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I think it's actually perfectly timed. I don't think we're going to see a drop because of the stamp duty. But I'm also not one of these people that believes it's the stamp duty that's causing a massive influx of that and I think that's you know one of the other keys too is you know it's very easy to say yes you know this is the reason and you know stamp duty is the sole reason.

No, there's so much pent-up demand from you know austerity laid with Brexit you know and all this sort of stuff that finally people have been given the ability to move.

I mean i just had a thing there about the you know northern properties leading the way well they should because for the last decade they have done very little so it's great that they're actually now starting to move you know and they've needed to for some time.

Video Transcription

Q: Do you think House Price will drop after stamp duty has increased again? 

Good one, awesome question actually and we get a lot of people asking this question right now. Do we have to rush the problem we've got right now is, we've had actually and we've had a rush and the rush has continued. Everyone was thinking it would taper off and it has tapered off a bit but not as much as you know it's not dropping like this. What it means is the pipelines now are full, so if you want to get mortgages you're going to struggle to get mortgages, they're going to take longer. If you want solicitors if you want all these processes you need to go in and get those and that's one of the issues right now. Will that mean that stamp duty sorry prices increase drop after stamp duty drops, look I don't think stamp duty is that much of an incentive now. Yes, it's an incentive for people who want to sell, to sell. It's an incentive people who want to buy, to buy. It's been a great thing from that perspective but it's only you know it's for a limited period. And yes do I think prices will drop?  NO, I think what it's done is it's got us through the winter months and I think that is above all the key thing here. It will keep some buoyancy in the market over the winter months so that when we hit that spring bounce that we call it in March-April every year that's the time which then the bar you know the stamp duty will drop away and the market should pick up. I think it's actually perfectly timed. I don't think we're going to see a drop because of the stamp duty. But I'm also not one of these people that believes it's the stamp duty that's causing a massive influx of that and I think that's you know one of the other keys too is you know it's very easy to say yes you know this is the reason and you know stamp duty is the sole reason. No, there's so much pent-up demand from you know austerity laid with Brexit you know and all this sort of stuff that finally people have been given the ability to move. I mean i just had a thing there about the you know northern properties leading the way well they should because for the last decade they have done very little so it's great that they're actually now starting to move you know and they've needed to for some time.


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