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Barb E Dahl

Plans To Scrap Stamp Duty (temporarily)

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This is not so easy.

Remember, we have been told the fuel escalator will be held, and now oil has gone down, that's cost the Treasury. We've had the 10p fiasco, another big wedge bunged to maintain the gerrymandering policy.

Stamp Duty is a big revenue generator, already down perhaps 50% (fall is geared on transactions, with lower transactions at lower prices, and the way the rate is calculated, a fall below a band is a massive saving...) - he'll need to find another tax to take the slack.

I've seen a projection suggesting the budget deficit rises to £75-90bn on current run rate, that's a huge deterioration from already the worst position in Europe (though Ireland is currently making a sprint to take the lead...), so there is no room to cut tax without cutting spending and re-writing the golden rule - if we see that, sterling comes under pressure and we import inflation. And rates go up.

Gordon's relaunch isn't going to go down well if it contains a savaging of public sector spending to fund a few gimmicky hand-outs, or tax rises...

IT's a mess. The industrial production numbers out today make poor reading. Down 1.6% YoY, down 0.2% MoM, confidence indicator showing economy contracting, prior periods revised down. Who said the Conservatives destroyed manufacturing - looks like we're making a great fist of rogering what remains... and the services that filled the gap left by the manufacturing decline is getting stuffed...

Someone should tell those who suggest we are near a turning point - IT CANNOT HAPPEN UNTIL THE ECONOMY TURNS UP, AND ITS STILL HEADING DOWN.

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The first issue is where they're going to get the money from to do this; though given the plummeting number of transactions in recent months the government has already taken a massive hit on stamp duty receipts anyway. So (and as I predicted a few months ago, not wanting to blow any trumpets or anything!), they now have a relatively low-cost gesture politics option.

The second, and bigger, issue, is that the proportion of a typical FTB transaction that is stamp duty is relatively tiny - 1% in fact. Prices have already fallen more than that, especially on the sort of property FTBs tend to buy. The amount of money they have to spend on a property will depend on (i) how much the banks are willing to lend them, and (ii) how much they are willing to borrow, if given the opportunity. I can't see how suspending stamp duty is going to have a significant effect on either.

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Wouldn't surprise me if they put Stamp Duty up. They're massively increasing motoring tax (fines).

Every other tax gets put up when there is less revenue from it.

If some people are rich enough to be able to afford a roof over their heads, surely they should pay twice the tax to compensate for those that cannot afford one.

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Guest sillybear2

I love dithering Gordon, he will induce yet more paralysis into the market until he announces a decision eitherway, who's going to exchange or complete now if there's plans to axe stamp duty next month? Or whenever Gordy finally makes up his f***g mind, for christ.

Edited by sillybear2

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How about Labour make a decision, instead of asking the media what they should do.

stamp duty could well be suspended

The Prime Minister is reportedly

Gordon Brown is considering

Chancellor Alistair Darling has indicated

plans remain firmly on the drawing board.

Every time, leak to the media, confirm they are possibly thinking of maybe doing it?, await poll ratings.

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attempt to push/keep stop the bottom rung populated by the gullible (FTbers and BTLers) from falling as much. The bottom rung falls the most and will bring the higher rungs

Why do you assume it's about the bottom rung? People higher up the ladder moving sideways or upwards would have a great incentive to brave the current housing market and try and move. If you're after a million pound property then stamp duty's obscene, 40 ******ing grand to that ********** brown.

Sure it's a tough market to sell into but on a move any drop for you is matched or exceeded by a drop for them on sideways & upwards moves. Even downsizing isn't so bad with a deal like this - say you're moving to a level of 80% of your current property and you reckon prices are 20% lower than they would be if you downsized later. The price falls mean you've lost 20% of the difference, i.e. 4%, the same as stamp duty, close enough that there's nothing to lose by giving it a go and seeing what you can manage.

I'd imagine at least part of the lack of activity from people already on the ladder is the knowledge that if they did try and move it could mean 6 months or more of keeping their house tidy for strangers to poke around and endless stress so whether or not the financial issues will get better or worse it'd just be too much hassle for now, but with a clear incentive of the major moving expense taken away if they act quickly it's a big incentive.

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How about Labour make a decision, instead of asking the media what they should do.

stamp duty could well be suspended

The Prime Minister is reportedly

Gordon Brown is considering

Chancellor Alistair Darling has indicated

plans remain firmly on the drawing board.

Every time, leak to the media, confirm they are possibly thinking of maybe doing it?, await poll ratings.

Of course they are awaiting poll ratings that's modern politics. You don't make a decision until you get voter approval.

However voters are very fickle they will tell you one thing and 2 minutes later change their minds after you've made a decision which then forces a u-turn from you as the aim is to please the voters, at which point you've become indecisive.

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Guest sillybear2

However, it's a bit of an existential crisis for this government, what good are high house prices unless they are benefiting in the form of raking in lots of stamp duty? Remember that governments primary concern is its own well being, they don't really give a stuff about anyone else.

This is just kite flying, they're waiting to judge the reaction. I'm sure they're twidding their thumbs in HM Treasury as we speak (dippy t**ts).

Edited by sillybear2

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Guest sillybear2
Can we scrap labour governments too?

Yes, but you end up with a £110 fine.

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I'd imagine at least part of the lack of activity from people already on the ladder is the knowledge that if they did try and move it could mean 6 months or more of keeping their house tidy for strangers to poke around and endless stress so whether or not the financial issues will get better or worse it'd just be too much hassle for now, but with a clear incentive of the major moving expense taken away if they act quickly it's a big incentive.

That's right. We need more people to put their homes on the market! :rolleyes:

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Property is falling faster so regardless of the Stamp Duty being scrapped which is only peanuts compared to the falling price. The Stamp Duty is only being equated to a week's fall in the property price anyway . I rather the 80K saving in the property price drop :lol::lol:

Desperate measures for a Desperate PM :lol:

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That's right. We need more people to put their homes on the market! :rolleyes:

Yes we do - not to protect house prices, but to increase activity and reduce the economic consequences of all those whose jobs are dependent on reasonable levels of activity being put out of work and becoming economically inactive.

More people putting their homes on the market and looking for another home to move to so that more deals are done (whatever the price drops) and more people dependent on deals stay in work would IMO be a good thing.

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Property is falling faster so regardless of the Stamp Duty being scrapped which is only peanuts compared to the falling price. The Stamp Duty is only being equated to a week's fall in the property price anyway . I rather the 80K saving in the property price drop :lol::lol:

Desperate measures for a Desperate PM :lol:

I think you mean desperate scrabble for votes by politicians of all parties ;)

Tory party pledge scraping of stamp duty

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More people putting their homes on the market and looking for another home to move to so that more deals are done (whatever the price drops) and more people dependent on deals stay in work would IMO be a good thing.

Absolutely, but in a tightening lending environment and slowing economy there is only one way to fix this.

Lower House Prices

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I Love this bit.....

"It is helping people that is important. I want to look at a range of options that will help people."

Yeah..helping yourself....but not anybody who needs a house :rolleyes:

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Absolutely, but in a tightening lending environment and slowing economy there is only one way to fix this.

Lower House Prices

Why? If someone's moving sideways for work for example then higher or lower prices don't actually matter at all. All that matters for those people is the actual cost of moving (and the inconvenience and stress of moving in a tough market), so a temporary window where they can move for free is a bonus.

Anyway, I see it's a deferral. Complete ******ing waste of time.

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I love dithering Gordon, he will induce yet more paralysis into the market until he announces a decision eitherway, who's going to exchange or complete now if there's plans to axe stamp duty next month? Or whenever Gordy finally makes up his f***g mind, for christ.

this seems to be gordons MAJOR problem. he is unable to make a decision and stick to it.

the election fiasco was the first bit of dithering and i think thats cost him dear.

now hes dithering left right and centre and the only decisions made are terrible disasters. like the 10p rate.

i think its because hes got the job by creating an economic mirage. now hes got he job you can see what a load of rubbish he is.

ive never seen a man in so much doubt all the time with horrible last minute knee jerk moments and a steady walk to the only things he knows.

more speculative policy green taxes and lots and lots of cctv state snooping.

YET - royal bank issue largest banking loss to date and yet the share price soars.

he got the whole country dithering now.

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Now that the stamp duty has been waived off, houses are affordable once again. So let us hurry before the stamp duty holiday season is over :lol:

Hey ReadingRabbit, i have found someone on housepricecrash whose finger prints i see on my property-bee every so often! I take it you are looking for properties around Reading as i often see your username on properties in Yateley. I have nothing to add to this conversation really other than i recognise RR through rightmove! I'm a FTB been passively lookin for houses over the last year. Although dropping stamp duty would be nice, (i am lookign at 200,000 appx houses) and that 2 thousand is better in my pocket than the governments its a fairly in significant amount when you are borrowing 180,000. I suspect it might be a minor vote winner though. Labour scum anyway, tax and spend party, always will be.

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Yes we do - not to protect house prices, but to increase activity and reduce the economic consequences of all those whose jobs are dependent on reasonable levels of activity being put out of work and becoming economically inactive.

More people putting their homes on the market and looking for another home to move to so that more deals are done (whatever the price drops) and more people dependent on deals stay in work would IMO be a good thing.

Very well said, its not about "re-inflating the bubble" its about getting things moving, lower prices isn't really an issue for most but collapse of transactions is the real problem. The government are as usual sitting on their hands and behaving like nervous teenagers, now is not the time for a "wait and see" approach, by the time they act it will be too late, its this attitude that played a part in causing this mess.

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  • 396 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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