Auctioneers are holding extra sales and urging sellers to exploit the “frantic” demand from buyers in the run-up to April’s stamp duty increase.
From 1 April there will be an additional 3% stamp duty on buy-to-let investments and second homes. Demand from auction buyers hoping to avoid the extra tax is expected to push up prices in the intervening period.
Andy Thompson, auction consultant at Edward Mellor, wrote in his blog: “From the moment we re-opened on 4 January, we have been inundated with frantic property buyers desperately trying to find their next purchase.
“We are receiving offers on houses within minutes of them going live on our website and our valuers can’t book them into the auction quickly enough.”
Demand is unlikely to be this strong again for the rest of the year, he added.
Savills has changed its original auctions schedule in March, adding an extra sale to allow buyers and sellers to take advantage of the short window before April. Unlike last year, there will also be an April sale.
Last week, Savills sent e-mails advising auction-goers to “buy and sell before the stamp duty increases”.
Romans director and auctioneer Simon Clayton tweeted the link to a one-bedroom flat on 12 January with the message: “Investment buyers, beat the stamp duty surcharge.”
Clive Emson chairman and auctioneer Clive Emson questioned the policy in the catalogue for the firm’s February auction, arguing that it treats small investors with “contempt” and is a “knee-jerk reaction to solve the housing shortage”.
