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Ease Stamp Duty To Help London Home-Buyers

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there are the wannabe buyers, for whom the housing ladder is disappearing faster than coral. Prices — which rose 15 per cent last year — continue to surge ahead. In the Barbican, more properties were sold for more than £1 million last year than in the whole of Wales. Some argue the Government must intervene; burst the bubble before homeowners’ finances are destroyed. But the market forces of supply and demand are better controls than politicians: measures such as Help to Buy have only pushed values up.

There is, however, a way ministers could easily intervene in London, which bears the brunt of the housing difficulties. As he announces his Budget on Wednesday, George Osborne should cut the part of the property pie the Government swallows: stamp duty. London, which contains just 13 per cent of Britain’s homes, is responsible for nearly half the £4 billion housing tax raised each year. Our little boxes now cost an average £410,000 — meaning a £12,000 stamp duty bill. that means the vastest of majorities are shackled with multi-thousand-pound bills for stamp duty. Since the tax also means extra costs for sellers, it hits the supply chain too. In a city that’s in desperate need of more places for people to live, why impose what is effectively a big fine on those who want to downsize?

But Britain needs London, and its deepening housing crisis is preventing talent from living here. Stamp duty’s bands should be more generous in the capital, making property purchases cheaper for first-time buyers and those seeking first family homes. The resultant shortfall could be plugged by hiking the housing tax on the buy-to-let landlords and property investors who are currently raking in the benefits of the high demand to live in this fair, but unfairly taxed, city. Link

Does she wants even higher prices?

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No matter how much they fanny around with it, it will eventually fall apart. So it's not a matter of if, it's when will it fall apart?

The answer is... not on my watch.

You can't base your economy on selling the same thing over, and over again, at a higher price, while wages stay the same!

Every time they intervene they push the time scale along some, but make the inevitable crash even worse. Just grab some popcorn, sit back, relax and be entertained. B)

They have put it in plain writing right there in front of you... "nobody can afford our insane house prices".... "Who will buy at these prices".... "too expensive"....

"It's a housing shortage, not enough land/house building"..... Strange? I don't trip over millions of people living on the street because there are no houses around? :lol:

You have the boomer generation buying, (anything that isn't nailed down) with their un-earnt equity from their original house purchase of £5,000 in the 1970's. Taking all the starter homes and then renting them out to each others children while calling themselves canny investors and refusing any house building in any area.

It's like the great famine in China, we can't eat our own children, so you eat ours and we will eat yours.

I'm so pissed off with it all, they make out like it's some great unfolding maze of opportunity, while it's a piece of shit treadmill, meant to keep us all in our place. <_<:D

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Regardless of your views on HPI/HPC, stamp duty is an absolutely horrendous tax that should be abolished immediately.

Even leaving aside how unfair it is, the market distortions it creates are absurd. The whole thing where you have lots of properties being sold for £249,999 and then the next cheapest being £270k is ridiculous

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If it must be kept then it should:

a) be abolished on primary residences and only apply to BTL/etc

B) morph into a sensible marginal tax structure, where you pay 1% on the first £250k, then 3% on anything between £250k and £500k. That would be a lot better than the current insane system where crossing the £250k line makes you liable for 3% on the whole lot.

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Also while stamp duty is bad for all owner-occupiers, its especially terrible for young people and first time buyers, since they are the ones who have the most trouble saving up their deposit (rather than using existing equity from a previous home). Saving up a £20-30k deposit is hard enough for most people, without being forced to cough up another £10k on top of that due to an idiotic tax system. Removing stamp duty would be a step towards reducing the purchasing power advantage that older people have younger people in the housing market.

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Also while stamp duty is bad for all owner-occupiers, its especially terrible for young people and first time buyers, since they are the ones who have the most trouble saving up their deposit (rather than using existing equity from a previous home). Saving up a £20-30k deposit is hard enough for most people, without being forced to cough up another £10k on top of that due to an idiotic tax system. Removing stamp duty would be a step towards reducing the purchasing power advantage that older people have younger people in the housing market.

Stamp duty falls on sellers, not buyers.

It's a stupid tax, but getting rid if it now will only force up prices.

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Stamp duty is an up front tax, you know hoe much you'll pay right at the start of the process of buying a property. It was never an issue in the boom.

If you cant think about and plan for all your costs when buying a property, then maybe you shouldnt be buying, or not buying at the price you cant afford.

I am getting p1ssed off people moaning that they cant afford to buy, wah wah wah. Stamp duty is stopping me, solicitors fees are high, the mortgage compant want a deposit, i have to prove i can pay it wah wah wag I cant afford to buy, thats why i rent. I have just spent our savings on a car for the missus as peace of mind that she'll actually get to her destination, and the car will be cheap ish to run is worth more than the pitiful return i was getting for bailing out the feckless people who over streached themselves, and continue to do so.

Buying a house shouldnt be cheap or easy, its one of if not then largest and most responsible purchase most of us will do. Your commiting to 25 (or more) years of debt payments. Who ever thinks it should be cheaper or easier to do are part of the reason as to why we are here.

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Stamp duty is an up front tax, you know hoe much you'll pay right at the start of the process of buying a property. It was never an issue in the boom.

If you cant think about and plan for all your costs when buying a property, then maybe you shouldnt be buying, or not buying at the price you cant afford.

I am getting p1ssed off people moaning that they cant afford to buy, wah wah wah. Stamp duty is stopping me, solicitors fees are high, the mortgage compant want a deposit, i have to prove i can pay it wah wah wag I cant afford to buy, thats why i rent. I have just spent our savings on a car for the missus as peace of mind that she'll actually get to her destination, and the car will be cheap ish to run is worth more than the pitiful return i was getting for bailing out the feckless people who over streached themselves, and continue to do so.

Buying a house shouldnt be cheap or easy, its one of if not then largest and most responsible purchase most of us will do. Your commiting to 25 (or more) years of debt payments. Who ever thinks it should be cheaper or easier to do are part of the reason as to why we are here.

Jesus, what's with everyone today. There is no reason why ordinary houses should not be cheap and easily available.

It's a brick box for ******s sake, and lasts centuries.

That the cost of housing is even an issue is disgraceful. Compare to the amazing cheapness of electronics or other high tech stuff.

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Jesus, what's with everyone today. There is no reason why ordinary houses should not be cheap and easily available.

It's a brick box for ******s sake, and lasts centuries.

That the cost of housing is even an issue is disgraceful. Compare to the amazing cheapness of electronics or other high tech stuff.

And thats the point, the box should be cheap, if thats cheap then stamp duty will be too.

Too many people are complaining that the associated costs are too expensive whilst missing the point.

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No matter how much they fanny around with it, it will eventually fall apart. So it's not a matter of if, it's when will it fall apart?

The answer is... not on my watch.

You can't base your economy on selling the same thing over, and over again, at a higher price, while wages stay the same!

Every time they intervene they push the time scale along some, but make the inevitable crash even worse. Just grab some popcorn, sit back, relax and be entertained. B)

They have put it in plain writing right there in front of you... "nobody can afford our insane house prices".... "Who will buy at these prices".... "too expensive"....

"It's a housing shortage, not enough land/house building"..... Strange? I don't trip over millions of people living on the street because there are no houses around? :lol:

You have the boomer generation buying, (anything that isn't nailed down) with their un-earnt equity from their original house purchase of £5,000 in the 1970's. Taking all the starter homes and then renting them out to each others children while calling themselves canny investors and refusing any house building in any area.

It's like the great famine in China, we can't eat our own children, so you eat ours and we will eat yours.

I'm so pissed off with it all, they make out like it's some great unfolding maze of opportunity, while it's a piece of shit treadmill, meant to keep us all in our place. <_<:D

Yes.I have been saying the same all along.There are no masses of people sleeping on the pavements in the middle of the night because "there is a shortage of houses".

There will always be a shortage of goods which people cannot afford.I live in London zone 2, and for the past 7 years I've wasted a great deal of my time and energy trying to find something decent/value for money to no avail.

Blaming the external enemy (rich foreign buyers) is a total nonsense and lies that the VI's and government + media peddles in order to divert attention from the real culprits-them.In my street/area the prices are totally insane for all these years apart from crash in 2009.

There are NO rich Russian/Chinese olligarch that moved into my area or the natives that sold them their expensive Marble Arch properties.Instead, it is natives that moved into this area who got mortgages on 11+ multiples of their salaries on liar loans or shady " investors" who buy the properties in bulk ( and do not ask for the price) on BEHALF

of dodgy City funds/investors who are getting funding from "special liquidity scheme" or "funding for lending),or HTB,..

That is the very reason why HTB is up to £600k and applies to London.

Let's not be naive and think that the same HTB rules apply to us and them.Not to mention FLS which it is not only the banks that flog it.You can also be a " City fund" in order to flog it.Both above facts were already anegsotally mentioned on this forum (bulk buyers on behalf of the City funds and who also flogs FLS).I live in the epicentre of this idiotic hysteria in my area and I can confirm those HPCers who said above

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And thats the point, the box should be cheap, if thats cheap then stamp duty will be too.

Too many people are complaining that the associated costs are too expensive whilst missing the point.

Oh sorry. Misread your post.

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And thats the point, the box should be cheap, if thats cheap then stamp duty will be too.

Too many people are complaining that the associated costs are too expensive whilst missing the point.

+1

Although letting the "greater fools" have their way might just flush out the last of them and help the market top sooner.

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ease stamp duty to help rich and corrupt foreign buyers and keep the pyramid going 6 more months.

that's how i read that headline.

you are a very silly person

it must be a depressing place living in a world where there is a conspiracy theory lurking behind every tree :(

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Stamp duty falls on sellers, not buyers.

It's a stupid tax, but getting rid if it now will only force up prices.

Not really, you cant break down sales tax that easily. Think of VAT for example; when VAT rises, the price of goods also goes up, it doesn't just stay the same with sellers l'paying' for the increase; some part of it is necessarily passed on to buyers.

But regardless, to the extent the seller pays part of the tax, they do it by losing a cut of their equity (in that they could have sold the house for slightly more otherwise). But first time buyers actually need to save up the money to pay stamp duty up front in cash, which can be incredibly difficult when they are struggling to save up for a deposit. Stamp duty (and other taxes involved in buying property) can easily add 30-50% to the amount of deposit that people need to save up in order to buy their first property. For young people trying to save up while renting, that can be absolutely crippling.

Stamp duty is probably the worst and most unfair (in terms of who it disproportionately hurts) tax that we have in the UK at the moment.

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Not really, you cant break down sales tax that easily. Think of VAT for example; when VAT rises, the price of goods also goes up, it doesn't just stay the same with sellers l'paying' for the increase; some part of it is necessarily passed on to buyers.

Really. Since the supply of housing is essentially fixed, the tax falls on the seller.

But regardless, to the extent the seller pays part of the tax, they do it by losing a cut of their equity (in that they could have sold the house for slightly more otherwise). But first time buyers actually need to save up the money to pay stamp duty up front in cash, which can be incredibly difficult when they are struggling to save up for a deposit. Stamp duty (and other taxes involved in buying property) can easily add 30-50% to the amount of deposit that people need to save up in order to buy their first property. For young people trying to save up while renting, that can be absolutely crippling.

Stamp duty is probably the worst and most unfair (in terms of who it disproportionately hurts) tax that we have in the UK at the moment.

Stamp duty messes with deposit requirements, I agree with that, but those are arbitrary anyway. There have been negative deposit mortgages, where the bank lends money for stamp duty, and as a result it makes no difference whether the stamp duty tax is paid to the government or extra money is paid to the seller.

Sdlt is bad because it reduces transaction volumes and market liquidity. Right now the concern is price rises, and scrapping stamp duty makes that worse.

The most unfair and insidious tax in the uk at the moment is land rent.

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