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Brokers - thoughts on Stamp Duty cuts in mini-Budget

ended 04. October 2022

A journalist is writing an article on whether house prices have increased following the stamp duty cuts in the mini-Budget. She'd like views from brokers on the following:

-              What are your thoughts on the stamp duty cuts announced in the mini budget?

-              Have you seen house prices rise following the stamp duty cuts?

-              Have sellers been pulling properties and putting them back on the market at a higher price as a result?

-              Have first-time buyers been priced out because of this?

-              How do you think this will play out over the coming months?

Keep your responses concise!!!

6 responses from the Newspage community

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Riz Malik
Independent Financial Adviser at R3 Wealth
A first-time buyer summed it up perfectly this morning. He said, "When the cuts were announced, we were happy and thought our dream of owning our first property next year was likely. However, the increased cost of borrowing has not only wiped away that benefit but made us worse off." Unfortunately, not a lot of people are talking about the Stamp Duty cuts this week & the Government has only got themselves to blame for that.
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Imran Hussain
Director at Harmony Financial Services
I am no fan of stamp duty; the cuts would have been welcomed by most but since the massive hammering the pound took following the rest of the announcements, the cost of borrowing for most wiped out any stamp duty savings immediately. I have not seen any house prices rise seen some oppertunists try and ask for more money on their properties but once the surveyor has swung thors hammer at the price everyone returns to normality as most don't expect much house price growth for at least the next 12 months.
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Mike Staton
Director at Staton Mortgages
What are your thoughts on the stamp duty cuts announced in the mini budget? Unfortunately, this isnt going to help the part of the market that needs it most, ther first time buyers Have you seen house prices rise following the stamp duty cuts? I've heard tales of vendors asking for more money, especially builders but i have not seen this with my own eyes Have sellers been pulling properties and putting them back on the market at a higher price as a result? Only this week have we had three vendors withdraw from the sale of their property as the onward purchase became to expensive, they hope to remarket next year as they are banking on the rates to drop again Have first-time buyers been priced out because of this? I think first time buyers have been completely left in the dark, we have seen no real replacement for the Help to Buy Equity Loan scheme and with the increase in cost of living affecting their affordability, i dont expect to see them being helped any time soon because lets face it, the stamp duty is only beneficial if you can actually afford to buy the home in the first place. First time buyers are a big part of the market but ity is really going to be down to the bank of mum and dad to get their kids on the ladder, unfortunately leaving parents with the choice of a safe home for their kids or a comfortable retirement
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Gaurav Shukla
Managing Director at Home Me Mortgages
The stamp duty cut announced at the mini-budget would have pleased many first time buyers, but also second home buyers and landlords. However, with the increase in interest rates from lenders, the difference in monthly payments now outweigh the savings in stamp duty. I've kept an eye on the property market, and with there being fewer people who can borrow the amount they need, or afford the monthly payments for new mortgages, sellers will have no choice but to reduce the property prices in order to gain more viewers and potential buyers. This will be the case going in to next year as rates are looking likely to keep increasing, meaning fewer and fewer potential buyers. Some will wait until the craziness of rates has calmed down before they look to buy, so reducing property prices may attract them to buy sooner.
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Graham Cox
Director at Bridging Hub
As a long-term restructuring of stamp duty, the recent changes are a step in the right direction, particularly when house prices have gone up so much over recent years. But I don't think it will help push up house prices because, within weeks, mortgage rates are likely to be 6% or higher on many deals. Property will become unaffordable at current prices, particularly for first-time buyers. I think it's likely we'll see sizeable house price falls. Perhaps 20% or more over the next year or two.
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Alastair Hoyne
CEO, Finanze Capital at Finanze Capital
The increase in the stamp duty threshold to £425,000 will certainly jump-start market activity again as this accommodates buyers in the higher price range. With reduced buyer costs, sellers will start commanding a slight raise in their asking prices. However, the stamp duty tax cut is not the only factor that we’re seeing to affect home price growth since the MPC will announce another interest rate hike in November. Nonetheless, as what we observed in last year’s stamp duty holiday, there’s no guarantee that the properties in different price bands will have similar reactions to the tax cut. The impact will be felt more on the number of transactions instead and the increased number of foreign buyers due to the weakening of the pound. We maintain our forecast that the combination of these factors will raise home values between 3% to 4% before the year ends.