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

Rics View Of Stamp Duty

Recommended Posts

RICS think stamp duty hinders FTBs.

I couldn't disagree more.

If stamp duty were scrapped, the price of houses would increase by the amount of stamp duty that is no longer paid.

If I buy a house for £200k, it makes little difference to me if this was stamp duty free, or if the 200k includes the stamp duty. I still have to stump up £200k. In fact I would rather some of my £200k go to the government that the person who paid £100k for the house 3 years ago.

Also, having house prices stick at the threshold points is GOOD for the buyer. How could is possibly be bad :blink: ?

Share this post


Link to post
Share on other sites
How could is possibly be bad

Money going to the taxman rather than EA's / lenders pockets?

Ultimately it's a tax on mobility which is a bad thing in principle. However, whether removing it would just lead to the same amounts being added to house prices is a moot point.

Share this post


Link to post
Share on other sites

Ahh, I see RICS now need some volumes to get paid.... and they are looking to the FTbers to buy to get their volumes up.

Sod them. As if removing stamp duty below £150K will make any difference at all.

Whats £1500 amongst the other costs of buying, especially when the most crappy 3 bed terrace would cost £150K round my way.

Share this post


Link to post
Share on other sites

If stamp duty increased significantly, affordability would decrease, so it would eventually result in lower prices.

It would also increase the costs of buying and selling, making it less profitable to speculators.

Scrapping stamp duty would result in a significant amount of property priced at 250k (the lower level is irrelevant since houses cost much more) jump much more than the additional stamp duty saved due to the elimination of this 'wall' (in my opinion anyway).

Share this post


Link to post
Share on other sites

Stamp duty is needed in addition to deposit, so for FTBs especially it means they need more money up front to buy.

£150k price

5% deposit - £7.5k

£1k legals / survey

£1500 - stamp duty.

Costs 10k to buy, 15% of which is stamp duty, which adds 15% extra time to save up deposit before buying.

FF

Share this post


Link to post
Share on other sites

Stamp duty is needed in addition to deposit, so for FTBs especially it means they need more money up front to buy.

Which is why they can afford less, so can offer less, so it does have in impact of the actual selling price.

Scrap the stamp duty - FTB can afford more, and will offer more, so house prices go up?

Share this post


Link to post
Share on other sites

FTBs do need to save up for stamp duty, but overall does removal of stamp duty benefit FTbs?

The market price of a house is probably restricted by all of the associated costs anyway.

If you removed all of the costs of buying: EAs (Sorry Fred), conveyancing solicitors, Stamp Duty, Mortgage Fees, Surveys etc. then you would probably see an equivalent increase in house prices..

This is mainly due to most people being willing to pay as much as necessary to buy what they want... people seem to want to stretch themselves to buy as much as they can.

Removing stamp duty won't really help FTBs much.

Share this post


Link to post
Share on other sites

.

If stamp duty were scrapped, the price of houses would increase by the amount of stamp duty that is no longer paid.

If I buy a house for £200k, it makes little difference to me if this was stamp duty free, or if the 200k includes the stamp duty. I still have to stump up £200k. In fact I would rather some of my £200k go to the government that the person who paid £100k for the house 3 years ago.

You are right - stamp duty is a tax on sellers, not buyers. It lowers the amount received by sellers, but wouldn't change the total amount paid by buyers.

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...
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 302 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.