The law of unintended consequences


So SDLT changes are pushing up the prices of cheaper homes?

The logic doesn't seem too complicated.  Someone buying a house has a budget and whether that gets spent on the house, the tax, the transaction fees, the carpets or the curtains it is the same budget.

So if someone can't afford the SDLT on a large home they will look at something cheaper and that pushes demand down the price scale - which pushes the prices in that part of the scale up.

We have the autumn statement approaching rapidly and the expectation here is that some changes to SDLT are going to feature.

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Increases in stamp duty have pushed up the prices of cheaper properties, according to a study by builder Berkeley Group. The changes have been inflationary at the bottom end of the market and deflationary at the top end in London and the southeast, it said.