New 1% Stamp Duty Threshold - £175k

scorza · 2 Sep 2008 at 10:54

http://news.bbc.co.uk/1/hi/uk_politics/7592852.stm

Surprised no-one has commented on this yet - but the government have announced that from tomorrow the threshold for the first, 1% stamp duty has been raised by £50k to £175k. Nice move, should have been done a long time ago. Any of those waiting to buy their first home tempted to start looking then? Stamp Duty is a real PITA let me tell you.

One big problem that remains however is that there's now only a £75k difference between the 1% threshold and the 3% threshold.

helmet · 2 Sep 2008 at 10:58

Yup, saw it.
This is my favourite part though:

Other measures aimed at boosting the housing market include "free" loans of up to 30% for first time buyers in England.

Households earning less than £60,000 will be offered loans free of charge for five years on new properties, co-funded by the state and developers.

As it's only an English problem that people cannot afford housing......
I wonder if Chris Hoy is busy? He could have a sponsored cycle to get some cash for the Scots.

RDM · 2 Sep 2008 at 11:01

helmet said:
Yup, saw it.
This is my favourite part though:

As it's only an English problem that people cannot afford housing......
I wonder if Chris Hoy is busy? He could have a sponsored cycle to get some cash for the Scots.

The price you pay for devolution. If the Scottish Parliament decide to spend cash on this, then that is up to them. Think of it as the other side of the "free prescriptions" coin.

helmet · 2 Sep 2008 at 11:04

Yup, I agree and also a little bit of payback for the local elections too.
Shame the Welsh have to get dragged into that part of it though just to show equality.

scorza · 2 Sep 2008 at 11:05

helmet said:
Yup, saw it.
This is my favourite part though:

As it's only an English problem that people cannot afford housing......
I wonder if Chris Hoy is busy? He could have a sponsored cycle to get some cash for the Scots.

Britain's Chris Hoy?

I imagine it's England only because similar schemes for Scotland, Wales and Northern Ireland would have to be announced by their respective parliaments.

helmet · 2 Sep 2008 at 11:09

scorza said:
Britain's Chris Hoy? I imagine it's England only because similar schemes for Scotland, Wales and Northern Ireland would have to be announced by their respective parliaments.

That's the chap

.
No mention of this in Scotland, another side of the devolution coin along with Labour's attempt to show up the SNP.

RDM · 2 Sep 2008 at 11:10

helmet said:
Yup, I agree and also a little bit of payback for the local elections too.
Shame the Welsh have to get dragged into that part of it though just to show equality.

It has nothing to do with payback for the local elections, but purely the fact that Westminister no longer has the power to legislate in that area in Scotland and Wales. One of the side effects of devolution is that Scotland and Wales (to a lesser extent) control their own budgets and decide what to spend their money on. It is up to the Scottish Parliament or the Welsh Assembly to announce similar measures if they so wish.

Solari · 2 Sep 2008 at 11:13

So this could in theory exacerbate price falls at the bottom end of the market? People will either wait for falls, or try to get discounts on, say, 200K houses, to below the threshold in order to avoid stamp duty?

Not that I'm complaining... keep on droppin'!

scorza · 2 Sep 2008 at 11:14

helmet said:
That's the chap .
No mention of this in Scotland, another side of the devolution coin along with Labour's attempt to show up the SNP.

http://news.bbc.co.uk/1/hi/scotland/7593400.stm

At least you chaps won't have to pay to visit people in hospital. Besides, aren't house prices in Scotland holding up quite well?

Like it or not, the next generation will be won and lost in Middle England. That's where these measures are aimed, not to punish the Scots for voting in the SNP.

Renatukasza · 2 Sep 2008 at 11:20

What do they mean by 'free loan'? just that you don't pay interest when paying it back?

scorza · 2 Sep 2008 at 11:21

Oops - just noticed that the £175k threshold only applies for a year before presumably going back to £125k. Cheap gits lol.

mike5678 · 2 Sep 2008 at 11:27

scorza said:
Oops - just noticed that the £175k threshold only applies for a year before presumably going back to £125k. Cheap gits lol.

Hmm really? I'm looking at becoming a first time buyer in the 150k region. This means I have a year to get it done and dusted to save myself a few bob?

bam0 · 2 Sep 2008 at 11:36

mike5678 said:
Hmm really? I'm looking at becoming a first time buyer in the 150k region. This means I have a year to get it done and dusted to save myself a few bob?

Well, yeah, that's the idea

It's a limited offer, get in now, attempt to boost the flagging housing market.

scorza · 2 Sep 2008 at 11:42

mike5678 said:
Hmm really? I'm looking at becoming a first time buyer in the 150k region. This means I have a year to get it done and dusted to save myself a few bob?

Well, if you bought for £150k in the next year you'd only save yourself £1.5k. However it's the hassle of having to pay it just as you complete as well - if you're well organised then not a problem, however most people aren't. Lenders don't normally let you pay stamp duty with the mortgage, so it has to be cash.

helmet · 2 Sep 2008 at 11:43

Scorza, RDM, you are both right I know how it's worked out with devo, I was just saying that it's quite handy that UK Government can make that offer to England and at the same time there is no proposed equivalent in Scotland, Wales, or NI, whilst pointing out the other handy benefits that devo has brought Scotland, in this case Something that Scotland, Wales, and NI needs just as much as the rest of the Country.

Yes, house prices are holding up in Scotland (~2% variation IIRC) compared to the rest of the country, even this time last year people could not afford to get into houses. House prices are beyond a joke, everywhere, so for UK Government to announce much needed help for only one part of the County and disguise doing nothing for the other two parts of the Country behind devolution, (whilst getting co-incidental payback, see above), that’s not right….

Anyway I've dragged the topic too far off course. Sorry. OT.

topshot · 2 Sep 2008 at 11:45

This still wont get the housing market going as banks are still after 10-25% deposits and fixed rate mortages are costing between £500 and £1200

Rotty · 2 Sep 2008 at 11:50

prob won't make much difference around here as stamp duty threshold was £150k anyway

scorza · 2 Sep 2008 at 11:50

topshot said:
This still wont get the housing market going as banks are still after 10-25% deposits and fixed rate mortages are costing between £500 and £1200

As it should be tbh - a 10% deposit should be the very minimum for a first time buyer. The arrangement fees can be added to the mortgage (unless that's changed with the crunch?) so are less of a problem.

platypus · 2 Sep 2008 at 11:53

scorza said:
As it should be tbh - a 10% deposit should be the very minimum for a first time buyer. The arrangement fees can be added to the mortgage (unless that's changed with the crunch?) so are less of a problem.

Thats as maybe, but it still won't get the housing market moving. It didn't last time Stamp Duty was suspended, and it won't again. The problem is the 70% fall in mortgage approvals due to banks mortgage funds being so drastically cut.

Another, slightly more comprehensive article: http://www.guardian.co.uk/politics/2008/sep/02/economy.houseprices1

Soulja · 2 Sep 2008 at 11:58

So what does this do for 1st time buyers who are on a low income and can't afford to buy a 'new' house? Do we not get any help at all?