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Autumn Statement - What Impact On Housing Market?

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So, what do we all think?

The main impact will come from the revisions to the stamp duty system.

I am not sure this will make much difference at all.

In fact, I think that it could serve to slow things down further in the South East and London, where some hovels are nearly £1M.

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Can't see it will make that much difference myself. Looking at places up to £300k and most are not selling anyway, I doubt a saving of £4k will change this.

3 bed detached house I was watching dropped from £310, to £295 and down to £260 yesterday (SE area) so some commonsense appearing perhaps.

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I like it. Hoping it forced down asking prices, as well as trip up 'victims' who always push and fall over one another to pay higher prices.... although I hope their number was diminishing anyway.

What happened before today

Until now no one paid stamp duty if they were buying a property for less than £125,000.

After that there were five bands:

• Between £125,001 and £250,000 – a 1% charge;

• Between £250,001 and £500,000 – 3%;

• Between £500,001 and £1m – 4%;

• Between £1m and £2m – 5%;

• Above £2m – 7%.

Homes that are registered to companies rather than individuals and cost more than £500,000 have a rate of 15%.


What has changed?

The slab structure has been scrapped and from midnight the tax will be applied like income tax.

There will still be no tax on purchases up to £125,000.

Above that there will be several bands:

• Between £125,001 and £250,000 the rate will be 2%

• Between £250,001 and £925,000 the rate will be 5%

• Between £925,001 and £1.5m the rate will be 10%

• Above £1.5m the rate will be 12%.

http://www.theguardian.com/money/2014/dec/03/george-osborne-stamp-duty-reform-key-facts-autumn-statement

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Jasmine Birtles just on Sky News said her fear is that it will increase prices, and that btl`ers must be licking their lips.

The people at the head of the Roman Empire probably said unrest was good for spear manufacturers or some such shite before it all came crashing down. Jasmine who?

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Can't see it will make that much difference myself. Looking at places up to £300k and most are not selling anyway, I doubt a saving of £4k will change this.

3 bed detached house I was watching dropped from £310, to £295 and down to £260 yesterday (SE area) so some commonsense appearing perhaps.

Perhaps one or two more sellers will come back to £250K in order to sell, lowering the value of other houses in the transaction with buyer-and-seller.

Oh, and yeah, that sort of common-sense what I want to see more of. :)

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Various opinions in Property Week:

Richard Donnell, research director at residential property market analysis company Hometrack, said: “Stamp duty is a perennial topic for both the Autumn Statement and Budget. It is an inefficient tax and acts as a barrier to market liquidity which is bad for labour mobility, but the flipside is that it makes a significant contribution to the Exchequer. Calls for change are beginning to manifest into reality, which suggests that the Government feels that stamp duty is starting to have a detrimental impact on labour mobility and the ability of households to access the housing market.The slab structure of stamp duty does create distortions at the price breaks and these have been around for years. Moving towards a more progressive tax structure will help those looking to get on the ladder and will end up costing those with higher value homes more.”

Jon White, UK managing director at the global construction consultancy Turner & Townsend, said: “The stamp duty overhaul will further stoke demand for new homes, and together with the raft of infrastructure spending announced yesterday, this Autumn Statement is both a shot in the arm – and a call to arms – for the construction industry.”

Heaton and Partners property search agency said: “This is a dramatic increase and it is likely to further stifle what has already been a subdued market at the very top end this year. However, I expect it to be shortlived the reality is that buyers at the top end tend to come to terms with the costs involved in buying and they will ultimately take it on the chin. Unwelcome as this news might be to those of us in the industry, I don’t think this will make London and the UK any less attractive to international buyers whilst wealthy British buyers will also come to terms with it.”

Nick Leeming, chairman of upmarket estate agents Jackson-Stops & Staff, with 44 offices in London and nationwide, said the new regime would act is a disincentive to property buyers at “the mid to high-end of the market. He said: “It is a tax on mansion buyers. This rate of 12% on properties above £5m will penalise the London market and also hit the country house market, which is still struggling to recover from the recession. However, we welcome the changes on stamp duty at the first-time buyer end of the market as this will help to stimulate activity at that level.”

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What is the situation with stamp duty and mortgages?

Buyer has to save for it, or do lenders roll it into mortgage applied for?

I hope it affects lending anyway / ability on buyers to pay, on real estate £250K upward at 5%.

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Simple.

Tax take on stamp duty is reduced by 700 million. To be paid for by bankster tax of 700 million.

So banksters put up the mortgage fees to pay for the 700 million tax.

So mortgagees pay for their own stamp duty reduction, plus the increase in prices as people raise prices above the thresholds.

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The British government give nowt away for nowt.

The must be expecting house prices to keep going up and up and up, so it looks like you are saving money but in fact, they've just pushed up asking prices 30% 8in a year.

Rather than osborne being applauded for this, he should be in prison for fraud IMHO.

A fool and their money are soon taxed.

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Sky News keep going to an estate agents office where the staff are over the moon. One beaming EA has just had an offer revised upward from £260K to £265K on the basis of the reduction in stamp duty. I goes to show that people will pay whatever they can get their hands on :rolleyes:.

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Sky News keep going to an estate agents office where the staff are over the moon. One beaming EA has just had an offer revised upward from £260K to £265K on the basis of the reduction in stamp duty. I goes to show that people will pay whatever they can get their hands on :rolleyes:.

WTF?...why would you increase your offer when a saving in tax was handed to you on a plate?

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WTF?...why would you increase your offer when a saving in tax was handed to you on a plate?

Perhaps because the seller had rejected the previous offer?

Make no mistake, this measure was introduced as a prop to the housing market and the estate agents are delighted.

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Perhaps because the seller had rejected the previous offer?

Make no mistake, this measure was introduced as a prop to the housing market and the estate agents are delighted.

The other guy can raise even more, as he has just saved even more...*****ers

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Taxpayers money used to boost house prices, quelle surprise.

Hectic few hours, mind everywhere, I see it's not quite as hpc favourable as I initially thought - except sharper costs at the higher end of the market.

Grr, stop meeting stupid high asking prices you competing jokers.

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Perhaps because the seller had rejected the previous offer?

Make no mistake, this measure was introduced as a prop to the housing market and the estate agents are delighted.

My thought too. In an environment where apparently it's all about the deposit not the price it won't be used to make savings, just push up prices regardless of the larger mortgage. Previously a 200k house, say 10% deposit, 2k SDLT meant 22k cash & 180k mortgage. Now same cash and extra leverage (because SDLT saving can be switched to deposit) affords a 204k house, 2.08% increase. Same sums on a 400k house affords a 413k house, 3.33% increase. So that's where EA's and sellers will pitch prices. Obviously deposit % and bank lending rules on mortgage sum affordability will differ.

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Round my neck of the woods this higher rates will have a negative effect, can't wait till the EAs realize that the top of their market just got shot.

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WTF?...why would you increase your offer when a saving in tax was handed to you on a plate?

I would assume that the 260k offer had been rejected.

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I would assume that the 260k offer had been rejected.

This is why I should read the rest of a thread before replying to an early comment.....

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