Jump to content
House Price Crash Forum
Sign in to follow this  
crashmonitor

Stamp Duty May Be Causing House Price Inflation ?

Recommended Posts

http://www.hmrc.gov.uk/statistics/transactions/val-40000-or-above.pdf

One thing has puzzled me, how can a property market rise on a million transactions a year ? That suggests a completely broken dysfunctional Market.

If the Market was normal that should be at least 2 million +...allowing people to move about every 10 years or so, as it is they are stuck in their properties for about 20 years at the current rate of sales.

Demand for properties isn't that great......only a million people want to buy (well at the current crazy prices), but I reckon a couple of million (at least) would sell if they could afford to.

I have long thought that stamp duty acted as a brake on house prices, and was a good thing.

But the tax burden of buying may be putting vendors off the idea of moving in the first place. In order to facilitate a couple of million moves a year then the housing market would have to tank considerably from here and stamp duty would have to be removed to give them the incentive.

Edited by crashmonitor

Share this post


Link to post
Share on other sites

http://www.hmrc.gov.uk/statistics/transactions/val-40000-or-above.pdf

I have long thought that stamp duty acted as a brake on house prices, and was a good thing.

.

I think it can, but... When I was looking with daughter just a few yrs ago a lot of the properties were priced at around £260-270K-ish, evidently hoping/expecting to sell for £250k, and many of them did. Now however that same type of property in the same area is priced at anything from about £350K - for the less desirable or frankly grotty - to £450k or even more. The 'brake' is now the £500K mark and the speed of the upward move in prices has staggered me.

Needless to say this is in 'no bubble, chaps' London.

Share this post


Link to post
Share on other sites

"Stamp Duty May Be Causing House Price Inflation ?" - More like...Stamp Duty Is One of the reason the government is pushing for idiots to pay more for houses !!!!

The whole tory recovery is based on house prices now, without them the GDP ( God Damn Ponzi ) figures are dead in the water.

Have a look at this thread:

http://www.housepricecrash.co.uk/forum/index.php?showtopic=198464

It may or may not be right but from where I am sitting it looks like about right, the government are going to tax the people of this country into submission.

One way or another they want their debt bubble supported and them ( the bankers ) with the debt ( wealth ) paid.

Edited by TheCountOfNowhere

Share this post


Link to post
Share on other sites

Stamp Duty stealth has meant a high cost of moving, so people tend to stay put. There aren't too many discretionary sales at the higher prices so many are due to death, divorce and debt. The only other factor that comes into play are people selling out of good primary school catchments to move to secondary school catchments. I read a letter in the London Evening Standard the other day where a marrying couple have not sold the places they currently own in order to buy together due to the cost, presumably living in one and letting the other.

The "reduce/abolish" Stamp Duty Thread ()

Share this post


Link to post
Share on other sites

tax will raise the price...but it is lending that allows people to afford the price.

Share this post


Link to post
Share on other sites

Anything that makes a market less liquid makes it more unstable i.e. more change of price rises or crashes. It is not good for anyone - apart from boomers who already have their dream home (e.g Ed Miliband).

Share this post


Link to post
Share on other sites

Interesting hypothesis from op.

I believe some areas (old coalfields?) are stamp duty exempt..is there evidence of different behaviour in those areas?

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • The Prime Minister stated that there were three Brexit options available to the UK:   209 members have voted

    1. 1. Which of the Prime Minister's options would you choose?


      • Leave with the negotiated deal
      • Remain
      • Leave with no deal

    Please sign in or register to vote in this poll. View topic


×

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.