Jump to content
House Price Crash Forum
workingpoor

Autumn Statement 2015

Recommended Posts

So I live in London.

They build a 'starter home' notionally worth £450k, but with the 'discount' that's £360k.

I need a 5% deposit, of 18k. Plus stamp duty of £8k. The government gives me the (crazy) 40% interest-free loan of £144k. Leaving me with a mortgage of £198k.

A mortgage that size would be about £850/month. The Help to Buy loan will cost me £210/month in the sixth year, and more in each year after.

That's a total of £342k of debt. Considering it's taken me ten years to save a quarter of that, it's a big ask, especially since interest rates are still at 'emergency' lows and job security is a 20th century concept.

Either way, that 'starter home' would be the only house I'd ever be able to buy. If I did manage to pay it off, once I managed it I'd be retiring.

It _might_ make sense, but only if this £450k house is actually a house worth spending nearly half a million on...

Share this post


Link to post
Share on other sites

Hot off the press!

An extra 3% stamp duty to be paid on BTL purchases. I couldn’t give a damn as I’ll never be buying another one again.

On the other hand, it will make it harder to sell to other landlords now – so I suppose it’s another pressure on us to sell to FTBs. Pity the b**stard couldn’t have given us an incentive to sell to them instead. I didn’t see that one coming. And the landlord bodies thought he might cut CGT if we sold to FTBs.

No they bloody didn't, Ros darling, at least not unless they were as deluded as you.

You're getting confused with an arrogant begging newspaper puff piece suggesting that it'd be a "good idea". It was NEVER going to happen.

Share this post


Link to post
Share on other sites

Yup, incredible stuff. If anyone is in denial about Osborn'es bubble pumping credentials, read it and weep.

Is the crazy plan to force BTL`s into the hands of FTB`s but still keep the price high, so they can say "More FTB`s than ever have the chance to buy" and the "Price of your home will be protected"? It was probably a stretch to think that Osborne wanted to actually crash any part of the housing market?

Share this post


Link to post
Share on other sites

Net fiscal giveaway of £6.2bn according to Chote.

Spend, spend, spend.

Have they taken into the account the c £30Bns from sales of Lloyds and RBS? Highly doubt it.

Share this post


Link to post
Share on other sites

Is the crazy plan to force BTL`s into the hands of FTB`s but still keep the price high, so they can say "More FTB`s than ever have the chance to buy" and the "Price of your home will be protected"? It was probably a stretch to think that Osborne wanted to actually crash any part of the housing market?

I used to think that he wanted to do the right thing but was trapped by the electoral maths and public support for crazy house prices. The Conservatives made sensible noises about housing in 2011/12, before it all got swept away in an attempt to win the election.

Now I think Osborne has no principles except to get elected. Here we are in the early days of a government where his party has an outright majority - the perfect time for some harsh medicine - and he's still adding more props. He'll never let house prices fall if he can manage it.

Share this post


Link to post
Share on other sites

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/479749/52229_Blue_Book_PU1865_Web_Accessible.pdf

Opportunity and security for families
The government will provide opportunity for working people through higher wages, lower
taxes and lower welfare, and support them in retirement through the triple lock on pensions.
The government is taking action to reward work and aspiration, reduce bills for households
and support first time buyers in securing their own home. The Spending Review and Autumn
Statement:
• gives working families on tax credits longer to adjust to the transition to a higher wage,
lower tax, lower welfare society, takes further steps to ensure fairness in the Housing Benefit
system, and ensures that reforms to welfare will save £12 billion a year by 2019-20
• sets out a five point plan for housing, including delivering 400,000 affordable housing starts
by 2020-21, focussed on low cost home ownership and reforms to the planning system to
free up land for homes
• supports families buying their own home through a 3 percentage point surcharge on rates
of Stamp Duty Land Tax on purchases of additional properties like buy to lets and second
homes

Share this post


Link to post
Share on other sites

Overall I think it's more HPI negative than positive.

Equity loans is just new builds obviously to bribe builders to build.

They will still be MMR constrained so its not adding to demand its bringing it forward.

BTL stamp duty is a big negative for London.

New builds supply in London is what 20k pa? Nothing in a city of 8 million people.

Any gain these chumps get from the internet free loan they will lose when they sell the new build slave boxes.

Edited by growlers

Share this post


Link to post
Share on other sites

I must admit I was stunned when I first read the increase in London HTB to 40% - but I think it is significant its limited to new builds. It makes me feel there is some very genuine fear regarding the slump in London sales and the sheer amount of new build 'luxury' developments coming through with no rich foreign investment waiting to snap them up. Anything less than 40% would make them unsaleable to Brits. Will be interesting in 5 years time though when buyers suddenly need to start paying the loan back and see their mortgage leaping by 40%...

Will be interesting to see how many people want the loans. It could amount to a damp squib in the bigger scheme of the unfolding collapse?

Share this post


Link to post
Share on other sites

I didn't hear anything about ltd company contractors, fingers crossed.

Nothing in the first detailed document. So looking ok so far. They have some sort of review next year though so could form a part of that.

Share this post


Link to post
Share on other sites

Higher rates of Stamp Duty Land Tax (SDLT) will be charged on purchases of
additional residential properties, such as buy to let properties and second
homes, with effect from 1 April 2016. The higher rates will be 3 percentage
points above the current SDLT rates. The government will use some of the additional
tax collected to provide £60 million for communities in England where the impact of
second homes is particularly acute. The tax receipts will help towards doubling the
affordable housing budget. This will help first time buyers.

So in SD exempt areas?

Share this post


Link to post
Share on other sites

Oh dear. Where are all those now who were salivating at the thought of Nobsore bringing the market down with his BTL escapades?

I think you attribute too much to the PTB ability to control all of this, as if they were using some sort of electronic highly sensitive device to control a glider or something. Far more people up and down the country will be involved in BTL, and spooked by the recent changes, than want eye watering debt for a new build London hutch. The housing market is still f*ucked. He should just let the market find it`s clearing price, but too many "foundations of society" (banks) would go boom if that happens. Lets hope the US are dead set on getting rates up.

Edited by dances with sheeple

Share this post


Link to post
Share on other sites

I think the 2nd property/BTL stamp duty change will cause a distortion in the market between now and April. I think it may further boost prices in the period before the tax increase.

Share this post


Link to post
Share on other sites

Higher rates of Stamp Duty Land Tax (SDLT) will be charged on purchases of

additional residential properties, such as buy to let properties and second

homes, with effect from 1 April 2016. The higher rates will be 3 percentage

points above the current SDLT rates. The government will use some of the additional

tax collected to provide £60 million for communities in England where the impact of

second homes is particularly acute. The tax receipts will help towards doubling the

affordable housing budget. This will help first time buyers.

So in SD exempt areas?

Weren't exempt areas done away with a few years ago? They were in Northern Ireland I believe.

Do you mean values under 125k?

Share this post


Link to post
Share on other sites

This will also put the knockers on trying to get a primary residence through use of a BTL loan..

No sure about that, it is an additional tax on all second(and +) homes, so shouldn't matter whether first home is a BTL or not.

However what happens when a BTLr wants to move their main residence, could be they have to pay the additional 3% -ouch!

Share this post


Link to post
Share on other sites

Lets hope the US are dead set on getting rates up.

You hope all you want. Whether or not rates rise next month is immaterial.

They'll come straight back down (if they ever rise) and frates will be low for as long as you can imagine.

Edited by Killer Bunny

Share this post


Link to post
Share on other sites

More landlord angst.....

Might have already been mentioned, I sure I’ve read it some where. What would happen if all landlords issued a letter to their tenants at the same time stating that they will soon be given notices due to the tax changes, the only way to have a hope of reversing this is write to their MP, perhaps with the benefit of a pro former.

I know it sounds a bit like a protest or Landlord Strike action however that is all I can see that would work to make the government listen and actually take notice.

Share this post


Link to post
Share on other sites

No sure about that, it is an additional tax on all second(and +) homes, so shouldn't matter whether first home is a BTL or not.

However what happens when a BTLr wants to move their main residence, could be they have to pay the additional 3% -ouch!

Now that is a good point.

Share this post


Link to post
Share on other sites

Now I think Osborne has no principles except to get elected.

Well yeah, he's a politician! That's his only aim just like all of the other politicians. They all lead such cosseted lives and have no real problems that they spend our money playing popularity contests. No politician is qualified to make decisions that affect the bottom 99% of the Country when they all occupy the top 1%.

The really sad thing about it is that we continue to let them...

Share this post


Link to post
Share on other sites

Weren't exempt areas done away with a few years ago? They were in Northern Ireland I believe.

Do you mean values under 125k?

Ah you're right - disadvantaged Areas Relief will be abolished for transactions with an effective date on or after 6 April 2013.

But currently 0 under £125k - will this now be 3%?

Edited by SarahBell

Share this post


Link to post
Share on other sites

I think the 2nd property/BTL stamp duty change will cause a distortion in the market between now and April. I think it may further boost prices in the period before the tax increase.

Asking prices maybe, but overall sales volumes will just flatline? Only thing that can get the market moving is a price crash.

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 397 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



×
×
  • Create New...

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.