Recent reports suggest that buyers are looking to save time and money by buying chain free homes before the Stamp Duty increases from April 2025.
NAVA Propertymark says that buying and selling a home through auction avoids lengthy and uncertain buying procedures as standard which would help many people find their dream home before the next financial tax year.
It’s often believed that auctions only offer properties to investors that require renovating, however, that’s not the case.
Properties of all shapes, sizes and prices are bought through auctions daily due to its efficiency – offering something for everyone.
HOMES UNDER THE HAMMER
The variety of properties NAVA Propertymark members have on offer at contrasting prices in different parts of the country shows how much variety auctions have to offer both buyers and sellers.
At the same time, it is important to be mindful of the Stamp Duty changes coming into effect from April to help you make an informed decision when buying a property from auction.
The latest Stamp Duty Thresholds from 1 April next year are shown below.
There has also been a reduction in the Stamp Duty threshold for first-time from £425,000 to £300,000, resulting in landing thousands of first-time buyers with an extra tax liability, which has the potential to hinder affordably throughout many regions.
AUCTION GUIDE
There are two different types of auctions: unconditional (traditional) and conditional (modern).
Unconditional auction sales are legally binding, which means the buyer and seller swap contracts once the gavel falls. But because they are legally binding, this gives buyers and sellers more confidence, and completion commences 20 working days later once the buyer pays a 10 per cent deposit.
“Although not legally binding, conditional auctions do need some financial commitment from the buyer.”
Although not legally binding, conditional auctions do need some financial commitment from the buyer whereby the successful bidder pays a reservation fee excluded from the purchasing price of the buyer’s chosen property.
With both types of auctions, the highest bidder who manages to increase the purchasing price above the reserve price secures the property, and this is great news for those hoping to make a lot of money from a house sale as they may end up securing a larger profit than they would do via private treaty.
With properties sold at auction being chain-free, conveniently for some taking place online from the comfort of your own home and with quicker exchange and completion times, this proves to be advantageous for those hoping to move quickly.
SECTOR IS THRIVING
Stuart Collar-Brown, NAVA Propertymark President, says: “The winter season tends to be a quieter period for the housing market, but Chancellor Rachel Reeves’ recent Budget may spur many people on to sell their homes before the new Stamp Duty thresholds are introduced from April onwards.
“Propertymark’s Q2 2024 Auctions Barometer found that the auction sector is thriving, with 38% of NAVA Propertymark agents reporting increased lot numbers.
“It is also crucial that buyers and sellers new to the auctioning process are helped by a qualified agent who is knowledgeable about the latest legislative changes, which is why we encourage them to seek out Propertymark Protected auctioneers.”
