Will the stamp duty holiday act as a drag on house prices above that level ?

Question

As in; houses that cost a little bit more than £175,000 will be dragged under that level by this stamp duty incentive. Isn't this going to drag prices lower ?

Answer 1

It will probably encourage sellers to raise their prices nearer the £175k threshold.

More worrying for first time buyers, however, is the strong possibility that it will tempt them into the market to save a relatively modest amount of money, but expose them to a far greater risk. A further reduction in house prices of up to 30%.

I warned in answer to an earlier question, that first time buyers should not fall for any politically inspired populist vote catching gimmicks, as this one surely is.

Answer 2

i would like gordon brown to come to my town and show me a house worth less than £175,000. he wont find many. at best, it will be a very run down ex council house in need of renovation. hes a bloody idiot desperately trying to buy votes and it wont work. hes pathetic

note. the reason i say ex council is not a slur on council houses. its a fact that they are generally cheaper.

Answer 3

Just to be clear about this, there is no stamp duty holiday across the board. From3rd September 2008 to 3rd September 2009, the Stamp Duty threshold has been raised to £175,000 from £125,000.

As this will not make any difference to anyone in my view, there will be no drag on anything.

Answer 4

yes

even more leverage for the estate agents to force vendors to lower their prices