Thursday, August 7, 2008

Dear oh dear

House sales start falling through after Darling warns of a 'stamp duty holiday'

House sales have begun falling through because of Alistair Darling's hints of a stamp duty "holiday", it was revealed today. Furious estate agents reported that some buyers have pulled out at the last minute in the hope that they may escape paying thousands of pounds in tax by hanging on. One London homeowner whose house sale has fallen though this week said, "My house, an ordinary Victorian terrace in south-west London, was going for £770,000 which meant a stamp duty bill of £30,800. "I completely sympathise with my buyer who is understandably unhappy about paying that amount if there is a chance of avoiding the tax but it has left me in a real mess." Stamp duty costs the average London homebuyer almost £9,000.

Posted by little professor @ 06:13 PM (1656 views)
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19 thoughts on “Dear oh dear

  • if it’s so ordinary-why does it cost £770k!

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  • Someone has to carry the can. Do you know what would really kick start the housing market? The threat that stamp duty is going to go up not down!

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  • An ordinary Victorian terrace…..£770,000. Say no more!

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  • mark wadsworth says:

    What Nick says.

    The bozo could always drop his price by £30,000…?

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  • “An ordinary Victorian terrace…..£770,000. Say no more!”

    Absobloodylutely.

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  • Who gets the £30k – the buyer or the seller? It was going to be £770k + £30k stamp duty = £800k. If Badger eliminates the stamp duty let’s share the difference – the house is yours for £785k. A boost to house prices.

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  • Indeed icarus.

    Fuss over nothing – this is vested interests attempting to use this issue to blame the government and negotiate later to get a genuine housing market concession in a few months

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  • It really is like watching headless chickens….Another badly thought out rescue package, deliberately leaked to “save the market” blows up in the treasury’s face… U turn before a policy, it would be funny if it didn’t affect some many peoples jobs/homes etc.

    GB’s rapidly becoming an HPC hero without even intending to… Hell he’s starting to make Bush Jr look good.

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  • Landedgentry says:

    Estates agents can know how it feels to be messed around. Good, keep it up.

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  • Eternal Sceptic says:

    Is this a case of a conspired leak that has backfired big time?

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  • “My house, an ordinary Victorian terrace in south-west London, was going for ”

    £770,000 for a terraced house – absolutely insane.

    And why this properdee market has to crumble.

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  • Absolutely agree. £770k for an “ordinary victorian terrace” – what planet are they living on?!

    Interesting comment below:

    Why not make “Property Appreciation Loans” more widely available. This way it doesn’t matter if existing home-owners are “cash poor but equity rich” as they can still do up their properties (central heating, new roofs, new bathrooms, new kitchens etc) as these loans don’t have to be repaid until the property is sold. This will ensure that UK property stock does not become run down. It also means that mainstream lenders can then concentrate on lending to “first time buyers” and “movers” plus it should remove a lot of dodgy lenders who charge a fortune 14-20% interest rates even on small loans.

    After all, if a home-owner has £150k-250k equity but cannot get any further money on income multiples why not simply use some of the existing equity to fund for any essential repairs? It’s a win/ win/ win situation for all parties concerned!

    Haven’t heard this particular idea before, must give it some more thought.

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  • Property Appreciation Loan – sounds like a shared ownership scheme to me as used for lifetime mortgages, where the ‘owner’ has effectively parted company with some of the equity.

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  • Property Appreciation Loan sounds like MEW to me. The extra equity is going to get blown away very quickly as the market falls.

    To get back to reality we have to drop to 3.5x income and that’s going to leave virtually everyone who bought a house after 2003 in negative equity, I think.

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  • The Victorian terrace would have been built for working class people of the day, as were the coach house conversions in
    Mayfair and Kensington that now command several million pounds each. The upper classes wouldn’t have stepped inside these buildings.
    This is the result of peoples requirement to live near to their jobs in the Capital which pay sufficient salaries to buy these houses.
    These folk are highly paid, highly mortgaged but ‘property poor’, but they just don’t realise it.

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  • This I believe is a deliderate attempt to get the prices down asap.

    It’s labours only hope to win the next election.

    The limited ammunition they currently have will be useless at present but may offer some support at -25/-35%.

    If they can achieve this by end 2009 they may have a hope of a stable market spring 2010.

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  • 11. str 2007 said…
    This I believe is a deliderate attempt to get the prices down asap.

    you may be right. That may be what their thinking is. But in true incompetent style, I think they are once again messing things up (honestly, the country would be in better shape if they were all shot). I really do not beleive it is possible to get the house price crash over with, plus time for the sheeple to forgive and forget, before the election. Simply not possible. Zanu Labour are dead.

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  • Darling’s indecision is further evidence of the govt desperately trying to give the impression of doing something ‘for the housing market’ but continually coming up against the brick wall of available resources or in Labour’s case lack of resources.

    The country is skint already borrowed to the max – 3 billion more for Northern Rock already this week alone !!

    We can just sit back and laugh as they try and come up with any solution as long as it dosen’t come with a £sign.

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  • Inbreda
    I agree they are not doing the job very well (crashing the market yes) but keeping the electorate in side no.

    Easy in hindsight, but they should have been explaining to the people the problems and preparing them for the financial shock of house price falls.

    Instead they put their heads in the sand and trotted out terms like ‘sound fundamentals’ etc. pretending all would be ok.

    They still have a chance to come clean and be honest and blame the banks etc.

    If they do and do it correctly, tell the electorate house prices will slide maybe 30%, but offer direct government loans to those families with mortgage shortfalls (difference between old world 6 times mortgages and new world 3.5 times mortgages). They will be seen as having been honest and having provided a solution under difficult world economic events.

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