Chancellor’s Stamp Duty giveaway only ‘modest’ boon for market, says Nationwide

first_imgThe recent Stamp Duty changes announced in last week’s Autumn Budget will have only a modest impact on demand, lender the Nationwide has revealed.Commenting within its monthly house price index published today, it says that in “many regions, first time buyers already paid little or no stamp duty as the price of the typical first time buyer property was below the previous threshold of £125,000”.Nationwide also says the Stamp Duty will benefit mostly first time buyers in London and the South East, and help sure up values for existing home owners in these areas of the UK.Its figures bear this out (see box, left). The Stamp Duty changes mean that in London, for example, 11% of first time buyers who would have previously paid on average £13,102 when they bought a property will now pay no tax, while in the North almost all first time buyers will now pay no tax, although until now they were only paying on average £100 in Stamp Duty.“Despite the enthusiastic reception given to the cut in Stamp Duty for first-time buyers announced in last week’s Budget, it’s too early to detect its impact in the increasingly stagnant picture painted by the Nationwide,” says says Jonathan Hopper, Managing Director of Garrington Property Finders (pictured, right).“Even then, no-one should expect the Chancellor’s Stamp Duty give-away to be a silver bullet. As the Nationwide’s analysis shows, outside London it will only affect a tiny minority of first-time buyers.“More importantly, stimulating demand at the bottom end of the market won’t help much if the market remains blocked at higher price points.“To function properly, the market relies on the whole chain working smoothly, with buyers at all levels able to move up the ladder.”Price risesNationwide’s November House Price Index also revealed that house prices rises slowed during November and the average now stands at £209,998. Prices have risen by 2.5% so far this year.“While house prices may be rising, the rate of actual price growth has been stalling, reflecting the market’s current shortage of affordable housing,” says Paresh Raja, CEO of bridging specialist MFS (pictured, left).“With inflation outpacing price growth, a significant number of prospective home buyers are not able to act on their property intentions.“In part, this explains why the Government has removed stamp duty for first time home buyers; alleviating some of the financial burden affecting entry-level investors so that more people are able to get their foot on the property ladder. It will be interesting to see how this affects property prices over the coming months.”Garrington Property Finders Paresh Raja Jonathan Hopper MFS Nationwide November 30, 2017Nigel LewisWhat’s your opinion? Cancel replyYou must be logged in to post a comment.Please note: This is a site for professional discussion. Comments will carry your full name and company.This site uses Akismet to reduce spam. Learn how your comment data is processed.Related articles BREAKING: Evictions paperwork must now include ‘breathing space’ scheme details30th April 2021 City dwellers most satisfied with where they live30th April 2021 Hong Kong remains most expensive city to rent with London in 4th place30th April 2021 Home » News » Chancellor’s Stamp Duty giveaway only ‘modest’ boon for market, says Nationwide previous nextChancellor’s Stamp Duty giveaway only ‘modest’ boon for market, says NationwideLeading lender sounds sceptical of claimed boost for first time buyers and the wider market to from Stamp Duty changes for first time buyers.Nigel Lewis30th November 201701,207 Viewslast_img read more