By David Potter of Potter & Co
By the beginning of next year the Stamp Duty threshold will fall from £175,000 to £125,000 and vat will rise 2.5%, back up to 17.5%. Taxes will rise but these punitive effects of the Government rescue of us from the recession can be avoided by a quick move in the autumn. Market your property now and you will take advantage of low interest rates, affordable house prices and some tax advantages.
Demand for property has outstripped supply at present, builders are considering accelerating their building programmes but still there is a shortage of property suitable for demand at the right price. Indeed some prices have risen back from the depths of the end of 2008 but not to the heights of mid 2007. This is mostly true of properties at the lower end of the price scale. Demand increased at Christmas with a resurgence of First Time Buyers, usually with Mum & Dad in tow holding the deposit. This has gradually stimulated the market during the year, and the demand turned into sales agreed during the spring and completions of sales has been strong during summer.
Hence there has been a perceptible rise in terrace house prices from its low point around Christmas. The middle part of the market benefits from the sale of terrace houses as people move up the scale but the price rises have been more subdued, and the higher end of the market is still having to adjust to lower levels in order to attract buyers.
At the right price any property will sell and the autumn will be a time when those priced at the right level will not hang around on the market, unlike some properties overpriced from up to 18 months ago that will not sell unless they are set at the right level. The time scale for sales going through at present is quite long, it can be 2 or 3 months from agreeing a sale before completion.So sell in September to move by Christmas, but move quickly, get the price right, otherwise we will be into next year and you wouldn’t expect to move before Spring when inevitably taxes will be higher.