Buyers Slash Offers Following Stamp Duty Changes
2 minute read
The London housing market has begun to see the after effects of George Osborne’s dramatic shake- up of stamp duty, with property buyers demanding significant reductions of central London properties. At the start of the month, Osborne introduced changes that effectively resulted in 98% of home buyers paying less Stamp Duty. The introduction of new threshold levels will lead to owners of lower value properties paying a far reduced rate of Stamp Duty, however the changes also mean an increased 12% rate over the threshold of £1.5million. The practice of lowering an offer after a price has been agreed is not uncommon in the London housing market. Known as ‘gazundering’, the aggressive practice has been mostly absent in the past five years, but the reforms made to Stamp Duty in the Autumn Statement reforms are seen as the direct catalyst for the sudden resurgence of such a practice. Agents have reported some bidders slashing offers by as much as £500,000, as an illustration of the aggression with which home buyers are responding to the changes in Stamp Duty recently introduced. With such an important overhaul of Stamp Duty and the slab structure, we would expect to see more dramatic changes in buyer habits as a result. For more information on the results of the Stamp Duty reforms, speak to Just Bad Credit today.