Stamp Duty changes will tempt sellers towards auction rooms:

One of the capital’s leading auctioneers says that selling homes through estate agents will inevitably become longer and more frustrating because of new Stamp Duty charges.

Last Friday (1 April 2016) saw the introduction of an additional 3% Stamp Duty for anyone owning more than one home – even if this is because they are in the process of selling their property in order to buy another.

Auction House London auctioneer Andrew Binstock said: “The latest tax is a punishing blow for those following the traditional estate agency route to market. The 3% hike in Stamp Duty will kick-in as soon as anyone owns more than one property. This will include people who are still trying to sell their existing home, but buy their new home in order not to lose it. In effect, they will be treated like any other second- home owner or buy-to-let investor.”

The new regulations indicate that the additional Stamp Duty can be claimed back if the first property is sold within 36 months. However, in practice, Andrew Binstock says that solicitors will be duty-bound to warn their clients about the tax implications of owning more than one property – especially if their original home fails to sell within that time.

He explained: “Previously, people were willing to own two homes simultaneously for a short time, if it prevented the chain in which they were involved from falling apart. The danger is, of course, that if their original home is still on the market after three years, they won’t be able to recover the extra Stamp Duty. This will inevitably lead to delays and fall-throughs in the estate agency process. As a result, more sellers are likely to choose the speed and certainty of auction instead.

“Auction sellers understand that the fall of the hammer constitutes a legally binding contract, with a completion date usually set for 28 days after the sale. The process is quick and transparent – with the benefit of the competitive auction bidding environment meaning that many properties sell for higher prices than they were on the market for through private treaty.”

Christopher Walkey

Founder of Estate Agent Networking. Internationally invited speaker on how to build online target audiences using Social Media. Writes about UK property prices, housing, politics and affordable homes.

You May Also Enjoy

Breaking News

Revealed: the most lucrative shared living postcodes

New research from COHO, the HMO management platform, reveals that the shared living market in England & Wales generates an estimated monthly rental income of £1.4bn. But which postcode areas are creating the most income from shared living? How much are HMOs making in your postcode? Find out here COHO has analysed the estimated number…
Read More
Breaking News

Mortgage approvals continue to climb in June

The latest mortgage approval data from the Bank of England figures show that: – Mortgage approvals on house purchases for June sat at 64,167 up (+1.4%) from 63,288 in May. This signals two consecutive months of growth. Approvals are also up (+5.6%) when compared to the 60,761 seen in June 2024. This growth is positive,…
Read More
bank of england interest rate
Breaking News

Bank of England Money & Credit Report June 2025

Net borrowing of mortgage debt by individuals increased by £3.1 billion to £5.3 billion in June, compared to a £2.8 billion increase to £2.2 billion of net borrowing in May. Net mortgage approvals for house purchases increased by 900, to 64,200 in June. Approvals for remortgaging also increased by 200, to 41,800 in June. This…
Read More
Breaking News

Housing market’s summer surge dampened by soaring stamp duty costs

Housing market activity has surged, with buyer demand up 11 per cent and agreed sales up eight per cent year-on-year, defying typical summer slowdown National house price inflation has slowed to 1.3 per cent, driven by a 12 per cent increase in homes for sale and higher stamp duty costs for many buyers Higher stamp…
Read More
Rightmove logo
Breaking News

Rents reach another new record as tenants pay £400 more than five years ago

The average advertised rent of homes outside of London has risen to another new record this quarter of £1,365 per calendar month (pcm), but the yearly pace of rent growth continues to slow: London rents also reach a 15th consecutive new record of £2,712 pcm this quarter Five years on from the pandemic, new tenants…
Read More
Breaking News

Six UK vineyards where homebuyers avoid the 84% premium

Six affordable UK vineyards where homebuyers avoid the 84% house price premium and toast a better deal The latest research from Yopa has revealed that living close to one of the UK’s top vineyards will set homebuyers back an average of £494,739, 84% more than the current UK average house price. However, there remain a…
Read More