New 1% Stamp Duty Threshold - £175k

I feel sorry for anyone who has their house on the market for around £180-195k at the moment. The new stamp duty threshold isn't going to help house prices.

What the government needs to do is make stamp duty more fair or scrap it altogether. Why isn't stamp duty tiered like income tax?
 
Good news, me and my fiancée are working hard to save as much as possible for our first house. The cut in stamp duty will help a little, but I like the idea of a free loan of 30% for the first five years. As long as it isn't one of these government scams where the interest rate is 'insignificant' a la student loans, which has risen to an 'insignificant' 4.8%.
 
Can't see how this stamp duty will help anyone. It'll save you about £2K as far as I understand, spread over a 20 year mortgage I make that... negligible saving or life difference :/

Besides, most properties in the south are over £175K. I don't think you can get a 1 bed flat for that here.

Fundamentally either house prices have to drop to a price point where people can afford their own places again or wages have to go up.
 
Soulja said:
Not everyone can get well paid jobs, and thus being able to buy whatever they want. Some of us have to do the hard working low paid jobs and get naff all. Surely you'd want to see your taxes helping a hard working couple with a family rather than a non working chav who gets a house and benifits?
Click to expand...
Whilst you are right, the fact that the tax and benefits system needs an overhaul is something for another discussion.
 
Tunney said:
What the government needs to do is make stamp duty more fair or scrap it altogether. Why isn't stamp duty tiered like income tax?
Click to expand...

It is - it goes up to 3% at home purchases above £250k, and to 4% on home purchases above £500k. Whether that's fair or not is another matter ;)
 
Jonny69 said:
Can't see how this stamp duty will help anyone. It'll save you about £2K as far as I understand, spread over a 20 year mortgage I make that... negligible saving or life difference :/

Besides, most properties in the south are over £175K. I don't think you can get a 1 bed flat for that here.

Fundamentally either house prices have to drop to a price point where people can afford their own places again or wages have to go up.
Click to expand...

When I got my mortgage last year at the height of the lax lending, I wasn't allowed to put my stamp duty bill on the mortgage - it had to be paid in cash on completion day. Essentially it will give home buyers an extra 1% deposit, which might not sound a lot, but if you haven't got it, it is quite a lot.

You can get plenty of properties in the south for less than £175k - maybe not in the nicer areas of Kent, but there are plenty of properties out there.
 
Jonny69 said:
Can't see how this stamp duty will help anyone. It'll save you about £2K as far as I understand, spread over a 20 year mortgage I make that... negligible saving or life difference :/

Besides, most properties in the south are over £175K. I don't think you can get a 1 bed flat for that here.
Click to expand...

Stamp duty is rarely stuffed onto mortgages and will only serve to raise your LTV if it did.

Tough luck for living in the south :p
 
RDM said:
Think of it as the other side of the "free prescriptions" coin.
Click to expand...

Not that hoary old chesnut again!!! You do not get free prescriptions in Scotland. Also those drugs that were prescribed for terminally ill patients and were withdrawn recently had not even been available in Scotland before that time.

AFAIK you do in Wales.
 
SiD the Turtle said:
Good news, me and my fiancée are working hard to save as much as possible for our first house. The cut in stamp duty will help a little, but I like the idea of a free loan of 30% for the first five years. As long as it isn't one of these government scams where the interest rate is 'insignificant' a la student loans, which has risen to an 'insignificant' 4.8%.
Click to expand...


The 30% loans are soley for current or currently being built un-sold new build properties. I would imagine most will be flats as the market has dropped off quite a bit lately.

Looks more like a measure to bail out developers rather than help first time buyers.
 
Don't see why so many people think this is great news for FTB's. If £1750 extra means not buying a house, then you cant afford one in the first place.
 
While it might not be a right to own a home, it doesn't mean it is something we should not try and a achieve.

I doubt this will help and I am generally happy to let people face their own mistakes, one reason for all this trouble is over lending/borrowing so screw em.

However as more and more people cannot afford a home through no fault of their own. (It is simply getting more expensive) even with an avergae job.

I don't think we should aspire to having the average person renting. It generally means they are paying the mortgage of someone who already has a home. most likely a few.


I argue that most people in the UK are of the type that are paying rent, paying a mortgage to own 1 home or are happy with the 1 home they have now paid for via a mortgage.

There are less landlords. Democracy in action.
 
As has been said with regards to the Stamp Duty threshold, anybody with a house on the market/valued at 175-195k is now gonna struggle to sell it at over 175k, same as last week I was looking and there was a large number of properties priced at 124,999 just to get below the stamp duty threshold, although I guess those guys are better off if they re-market it higher than 125k...

As for the 'free' loan, not enough details, but it seems as it's either gonna be just a simple 30% loan, which will (imo) devalue houses that aren't new-build as they now have to compete with new-builds which are now (for 5 years at least) 30% cheaper,

Other option is if that's shared ownership/equity based loan, in which case how is that different to the current shared ownership schemes already available (and from what I can see based on some new flats opposite where I live, not selling either...)

Overall it seems like a poor attempt, 'expensive flop' as someone from the treasury classed it,

Saying that I might've changed my mind if the 30% was available for non new-build's, as I'd never buy a new-build after living in one now, hateful place :p
 
Morba said:
Don't see why so many people think this is great news for FTB's. If £1750 extra means not buying a house, then you cant afford one in the first place.
Click to expand...

That was exactly my point Morba, £1750 is NOT much money at all and if you can't rustle that up then maybe you should question whether you're ready to buy a property.

If you can't put your hands on that sort of money now then what happens when the boiler goes bang and you need £1K to get a new one fitted? Will you be able to find that?
 
scorza said:
It is - it goes up to 3% at home purchases above £250k, and to 4% on home purchases above £500k. Whether that's fair or not is another matter ;)
Click to expand...

no it's not
because it goes up on the whole amount, whereas income tax you pay 0% upto your untaxed earning threshold (£5400) and then 20% on the amount between that and 36000 and then 40% on everything over 36000

so if you earn 37000 you pay 40% on 1000 and 20% on 30600
if it was the same system as stamp duty you'd pay 40% on all of it
 
Third Opinion said:
The 30% loans are soley for current or currently being built un-sold new build properties. I would imagine most will be flats as the market has dropped off quite a bit lately.

Looks more like a measure to bail out developers rather than help first time buyers.
Click to expand...

New builds only? Damn the BBC's lazy reporting.
 
do_ron_ron said:
Not that hoary old chesnut again!!! You do not get free prescriptions in Scotland. Also those drugs that were prescribed for terminally ill patients and were withdrawn recently had not even been available in Scotland before that time.

AFAIK you do in Wales.
Click to expand...

Replace it with tuition fees then. Same difference. The point being that Holyrood decides where to spend the money rather than Westminster.
 
Jonny69 said:
That was exactly my point Morba, £1750 is NOT much money at all and if you can't rustle that up then maybe you should question whether you're ready to buy a property.
Click to expand...

£1750 cash is a lot of money :confused: you can dunk it straight into your house rather than paying a tax and will save you around £3500 over the course of the mortgage. Or are you saying you should only buy houses in 100% cash?

I can afford to buy and not having to find an extra £1750 is splendid if you want to move fast. It means I have £1750 ready for a new boiler. However like everyone else I imagine Ill save more than that by waiting longer before I buy they only have to drop abit more and it becomes a case of moving into a house (albeit smaller) for the same outgoings im paying renting.

I can only see postives to my situation from this cut as it puts extra pressure on the properties just above 175k.
 
You must log in or register to reply here.
Back
Top Bottom