The average price of a house sold at auction, has fallen by almost one fifth since 2007, the Liberal Democrats warned today.
Calculations by Liberal Democrat Treasury spokesperson, Lord Matthew Oakeshott found that the average price of residential properties sold at auction in the second quarter of 2008 was down 18.7% from the same quarter of 2007. This is an average fall of £32,000, from £170,757 to £138,857.
Oakeshott, says: “Auctions are the real deal with real buyers who have to exchange contracts and pay their deposit when the hammer falls. The published house price indices are well behind the market drop.
“Deferring or suspending stamp duty with house prices in free fall would be like throwing a bucket of water at the Great Fire of London and risks sucking vulnerable first time buyers into negative equity.
“Stamp Duty needs serious long-term reform, not a quick fix to save Gordon Brown’s skin.”
