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Brown Might Raise The Threshold

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Seems very likely in my opinion that he will do something to give the market a boost

http://uk.biz.yahoo.com/18032006/17/expect...get-eye-10.html

The other big property issue is stamp duty. Last year, the Chancellor doubled the threshold to £120,000, yet the total stamp duty collected in the last financial year was a record £5.5 billion. Getting people on the property ladder is high on the agenda, so Brown might raise the threshold or develop a mechanism for first-time buyers to avoid this.

MacIntyre Hudson predicts two new bands of 5 per cent for property over £750,000 and 6 per cent for property over £1 million to clamp down on City workers being paid bonuses in bricks and mortar.

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Have I missed something?

I can't see how raising the threshold for Stamp Duty has helped FTBs.

Sure, they don't pay the tax, but the greedy sellers'll just put their price up. What you might have saved on stamp duty, will now go to the seller.

NDL

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Looks like just another measure designed to delay the boom derailing itself.

If you're concerned about government implementing policy which may continue to inflate the house price bubble you really should do something about it.

I intend to write to my MP asking why the government they keep introducing measures which will push house prices up higher.

The SIPP's u-turn shows that they understand this so if we keep the pressure on them perhaps we can make a difference.

If you want an easy way of contacting your MP online click here or here

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Raising the threshold has boosted HPI by keeping FTBs in the market place. Better to lower the threshold and double the tax and that way the market will adjust sharply downwards thereby allowing FTBs to buy cheaper. :)

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As Gordon well knows, actually helping FTBs is not important. All that is important is that the perception of the majority of the genral public is that he is helping.

Unfortunately, even most FTBs will believe that he is doing them a favour! FTBs only have so much to spend. They compete for property on the basis that whoever pays most gets it. This simply enables them to pay a little more. The benefit is purely for the seller.

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As Gordon well knows, actually helping FTBs is not important. All that is important is that the perception of the majority of the genral public is that he is helping.

It will be the hype surrounding it as well – the same as the last time he helped FTB’ers – we will get Gordon has stepped in to help the plight of FTB’ers so they can at last afford to get on the housing ladder – and as we have such a strong market with under supply of properties low interest rates and high employment / stable economy there has never been such a good time to buy – and after 25 years when you have finished paying for your first shoebox we are going to kill you with your pension

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Guest muttley

Unfortunately, even most FTBs will believe that he is doing them a favour! FTBs only have so much to spend.

This is the point.The market cannot carry on as it is,because FTBs are priced out, and BTL yields alone don't make sense.

To misquote Woody Allen

"A housing market, I think, is like a shark. You know, it has to constantly move forward or it dies. I think what we have on our hands is a dead shark."

Edited by muttley

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This is the point.The market cannot carry on as it is,because FTBs are priced out, and BTL yields alone don't make sense.

To misquote Woody Allen

"A housing market, I think, is like a shark. You know, it has to constantly move forward or it dies. I think what we have on our hands is a dead shark."

The only way it will help me is if he raises the 3% tax to above £300k instead of 250k at the moment.

I disagree that the sellers will keep the difference.

It will give buyers additional leverage by saying..."but you've saved £5k on stamp fees so cut that out."

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The only way it will help me is if he raises the 3% tax to above £300k instead of 250k at the moment.

If he was to raise the tax breaks to as you say above the £300 k – I wonder if he will lower them again after the crash

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Not sure about that but in all honesty if he was to raise the 3% figure above £300k it would certainly give me more motivation to go and buy...would save me something like £5k in tax which would be a massive boon.

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In the book "The African Queen" the passengers threw furniture in to the boiler so that they could get their steam ship to safe harbour. Now we have a Scottish queen burning everything in his desperation to reach No 10.

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In the book "The African Queen" the passengers threw furniture in to the boiler so that they could get their steam ship to safe harbour. Now we have a Scottish queen burning everything in his desperation to reach No 10.

Maybe that should be British Queen.

NDL

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Not sure about that but in all honesty if he was to raise the 3% figure above £300k it would certainly give me more motivation to go and buy...would save me something like £5k in tax which would be a massive boon.

I think the benefit would be purely psychological, but if it makes you happy. (It can't be that bad). :P

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Seems very likely in my opinion that he will do something to give the market a boost

http://uk.biz.yahoo.com/18032006/17/expect...get-eye-10.html

The other big property issue is stamp duty. Last year, the Chancellor doubled the threshold to £120,000, yet the total stamp duty collected in the last financial year was a record £5.5 billion. Getting people on the property ladder is high on the agenda, so Brown might raise the threshold or develop a mechanism for first-time buyers to avoid this.

MacIntyre Hudson predicts two new bands of 5 per cent for property over £750,000 and 6 per cent for property over £1 million to clamp down on City workers being paid bonuses in bricks and mortar.

.......well for what it's worth I think he won't!!!

they've just won an election and so I'm fairly sure he will bludgeon the poor homeowner with stealth taxes this year.......helping to keep interest rates low!!!!!!

...we seem to be moving towards a EU model state so expect a similar tax burden.

but he'll probably give the elderly an extra £100 for fuel.....such a kind hearted soul,he didn't tell them about the £120 a year council tax rise.

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.......well for what it's worth I think he won't!!!

I think you're right, if $hit goes wrong not long after people saw him tinkering then he will get the blame by default, that would include him taking aim at the top end of the market!

Look at what happened when the Nasdaq crashed, people initially blamed some judge's arcane ruling in the Microsoft case, because ya know, the last 5 years of nuttiness obviously wasn't a factor, it was all due to one minor thing on an otherwise pleasant day.

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He is just trying to steal the Tory's thunder. They have identified the biggest stumbling block to FTB home ownership as, what would you expect from the Tories? Tax. So GB is going to get their first, remove the tax and it won't make swot all difference because neither Labour nor Tories have the slightest intention of addressing the root causes of the problem (easy credit and synthetic land shortage). Adressing either of these issues would unduly affect the haves, which is not going to happen under either regime.

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In a buyers market the stamp duty saving goes to the buyer.

In a sellers market the stamp duty saving will go to the seller.

Which is it right now? Depends where you are perhaps.

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Raising the threshold has boosted HPI by keeping FTBs in the market place. Better to lower the threshold and double the tax and that way the market will adjust sharply downwards thereby allowing FTBs to buy cheaper. :)

Tell me: how will a FTB at the wrong end of a 4million dole queue be able to buy anything cheaper?

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Tell me: how will a FTB at the wrong end of a 4million dole queue be able to buy anything cheaper?

House prices will be lower as recession bites and over-extended owners will either have to sell at real values or face repossession. It is true that unemployed people will be unable to buy houses but as all recessions eventually end they will be able to buy in as soon as employment picks up again. And around we go again..........

Perhaps next time the Alan Greenspans and Gordon Browns of this world will avoid exaggerated boom-bust cycles with overly accomodative policies for the sake of political advantage. Instead, go with the cycle and don't try to fight it.

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  • 301 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%



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