Wednesday, Mar 24, 2010

Stamp duty 0% to 250k

FT: 0% stampduty to 250k (effective midnight today), 5% for £1m+

Stamp duty 0% band is now extended to 250k.

Posted by easybetman @ 02:14 PM (5154 views) Add Comment

26 Comments

1. need-a-crash said...

Never mind the fact that we're in debt up to our eye-balls, that we have a public sector we can't afford, that sterling is tanking, that we have no manufacturing and our financial services industry is in tatters... Let's just stimulate the housing market!

This country really does suck!

Wednesday, March 24, 2010 02:17PM Report Comment
 

2. wally said...

Seems you can only qualify if your name has never been on the land register. Can't see that there's a big group of yougsters out there who can suddenly find £250K. So this looks like political window dressing. Might encourage a few more sellers onto the market though.

Wednesday, March 24, 2010 02:26PM Report Comment
 

3. jonny parker said...

How many fraudulant purchases will this lead to? Whereby I get you Mr 1st Time buyer to buy the property with my money and then hand it over? If that is possible?

Wednesday, March 24, 2010 02:41PM Report Comment
 

4. Redcellar said...

"I get you Mr 1st Time Buyer to buy the property with my money" and then not hand it over ;)
That would make me laugh. Not sure you could really take it to court, as you would be admitting serious fraud.

Wednesday, March 24, 2010 02:52PM Report Comment
 

5. easybetman said...

@John - if the property is to be reregistered in your name, then SDLT will apply AGAIN. So, no. Unless you keep it under the orignial purchase name.

Wednesday, March 24, 2010 03:28PM Report Comment
 

6. magnifico said...

I think the increase in stamp duties on 1M+ properties is good news as the top end of the market/ very desirable areas have been driving the "recovery".
If this category suffers price falls these will feed through to the National Indexes as these record the average price changes.

Wednesday, March 24, 2010 03:29PM Report Comment
 

7. magnifico said...

.... and this will result in a shift in sentiment back to last year's levels

Wednesday, March 24, 2010 03:33PM Report Comment
 

8. mark said...

Seriously how many first time buyers on supermarket salaries can even afford a house these days?

Wednesday, March 24, 2010 04:00PM Report Comment
 

9. King5ton said...

@Mark

I believe the offical figure is 3 FTBs.
Although one hit it big on the lotto so she's technically an ex supermarket employee

Wednesday, March 24, 2010 04:41PM Report Comment
 

10. jack c said...

@magnifico - the Stamp duty on residential property sales over £1m doesnt kick in straight away (increases to 5% from April 2011)

As ever with the present government it takes days to sift through the small print and find out what they are really introducing - suffice to say that the property market must be propped up at all costs !!

Wednesday, March 24, 2010 05:29PM Report Comment
 

11. mark wadsworth said...

@ Jack C, they are doing what they can - reduce SDLT, freeze Council Tax and so on.

Wednesday, March 24, 2010 05:45PM Report Comment
 

12. jack c said...

Hi Mark, agreed plus a few of the lenders are responding with higher LTV's and lower interest rates (whether the mortgage deal comes to fruition however is another matter)

I still maintain prices cant defy gravity forever

Wednesday, March 24, 2010 05:51PM Report Comment
 

13. little professor said...

Interesting comment on the telegraph article:

For those looking to sell £250,000-£285,000 properties that market is now dead. A FTB putting down 10% would have costs (excluding lawyers etc) of £25,000 on a £250,000 property and £35,100 for a £270,000 property. The “true” value of property is therefore entirely by government measures, to an even greater extent than before as there is no gradual increase. It’s like removing the incremental increase in income tax and just having say a 10% blanket for £30,000- and 30% for £30,001+. Nobody would be paid £30,001-£40,000.

Wednesday, March 24, 2010 06:14PM Report Comment
 

14. alan said...

This budget will never see the light of day. They will just pass a resolution to allow the IR to continue collecting our taxes.

Wednesday, March 24, 2010 06:26PM Report Comment
 

15. fallingbuzzard said...

People looking to move up the ladder and buy for less than £250k will feel very happy I'm sure

Wednesday, March 24, 2010 08:28PM Report Comment
 

16. jack c said...

Vendors could of course use the SDLT extended holiday to shove up their asking prices by the corrosponding amount?

Wednesday, March 24, 2010 09:04PM Report Comment
 

17. John Mcgeechan said...

Let's be honest the most likely outcome is that those that had a house around 125K and say 230K will feel as though they can up the price by another 5 grand.

Wednesday, March 24, 2010 09:16PM Report Comment
 

18. Pyracantha said...

@ fallingbuzzard. Please read the original article. The deal is for FTB's so would not apply to people moving "up the ladder".

Wednesday, March 24, 2010 09:59PM Report Comment
 

19. tenant super said...

http://www.channel4.com/news/articles/politics/domestic_politics/channel+4+to+stage+chancelloraposs+debate/3582162

maybe all HPCers should send a fairly tame question about housing to chancellordebate@channel4 dot com and if one gets on the show, spice the question up.

Wednesday, March 24, 2010 10:35PM Report Comment
 

20. soundman74 said...

fallingbuzzard. You misunderstand - just as Darling wants you to. This is only for first time buyers - not people moving up the ladder. Furthermore all it really does is try to encourage FTBers to spend a little more on a property and therefore borrow more - since they can't [borrow/spend/afford more] it's all kind of irrelevant!

Thursday, March 25, 2010 08:09AM Report Comment
 

21. Simon said...

Whilst I would love to be in the position of having a £1m house I really can't see any justification in the Govt grabbing £50,000 of such a sale.
Petty divisive politics while Rome burns.

Thursday, March 25, 2010 08:48AM Report Comment
 

22. happy mondays said...

Wise words soundman74...& if the ftb have an ounce of common sense, they will not get roped into the scam of the century..

Thursday, March 25, 2010 10:06AM Report Comment
 

23. fallingbuzzard said...

@16, i don't misunderstand. just a bit of verbal irony. amazing how the government can screw the majority (average people selling and buying in the £125-£250k range) at the expense of a minority (FTBs able to afford more than £125k first purchase) and get good news headlines and political capital. And then they increase rates on the £1m+ bracket and everyone cheers without understanding what impact this would have on tax take in that band, since it further encourages the use of stamp duty avoidance / tax planning structures. On top of that, they have all this fuss about Ashcroft and the like and getting tax from them, whilst at the same time propping up the value of the housing market and people like Ashcroft's property wealth.

Thursday, March 25, 2010 10:39AM Report Comment
 

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