[330XDave]

So a lot of debate on stamp duty over the last day or do.

Rumours are that an announcement will be made to alter stamp duty in the autumn which has faced a lot of criticism due to the likelihood that it will kill the housing market until then. I must agree that surely it is going to make even more people hold off on moving.

From a completely selfish point of view I hope that an announcement is made to alter it now. I am working towards exchange on a £285k house and if it is abolished completely up to £300k as the rumours are suggesting, it will save me £4250!

Thoughts?

[JustChris]

Not aware myself of any rumour and both buying and selling we'd miss out on that threshold. Do you know if it's planned to reduce the >£300k stamp duty as well as abolish it below?

[330XDave]

https://www.dailymail.co.uk/news/art...ng-market.html

[330XDave]

It says a 6 month holiday but the way I read it is that that is for properties over £300k and they are looking to temporarily abolish for all buyers (not just first time) below £300k.

[MashinBenzin]

The Times suggests temporary abolition on properties up to £500k. Expected to be announced as an outline plan today, with full details to follow in the autumn budget. So we shouldn't have long to wait to find out more.

[JNW1]

Originally Posted by MashinBenzin

The Times suggests temporary abolition on properties up to £500k. Expected to be announced as an outline plan today, with full details to follow in the autumn budget. So we shouldn't have long to wait to find out more.

The way I read it it's effectively a temporary increase in the threshold at which stamp duty becomes payable? So basically nothing to pay on the first £500k but if the property value's above that stamp duty will start to become payable (but only on the excess above £500k and presumably on a sliding scale?). Therefore, all house purchasers would benefit, it's just that those buying higher value properties will still have to pay at least some stamp duty.

As you say, though, the Chancellor is expected to make an announcement later today so we should know more then!

[bobo13]

Does this extend to buying an additional home?

[teaston]

It's going to be up to £500k, this is great news for our current house purchase as it will save us £13,250!!

Also great news for those of us who work in the property sector, hopefully Peston is right about how it will be implemented:

[isleaiw1]

Originally Posted by bobo13

Does this extend to buying an additional home?

The 3% surcharge at all levels will almost definitely remain, whether they reduce the base stamp duty on second homes remains to be seen.....

[Arcticdan]

Originally Posted by bobo13

Does this extend to buying an additional home?

I hope so! our house sale fell through in March because of covid so now in order to get our new home and not lose it, looks like we are going to have to re-mortgage and have two properties. So if it gets delayed till the Autumn that will not help us either, also hopefully the Welsh government will not throw their political toys out of the pram and not follow suit!

[XAlp]

Does stamp duty get charged if buying land to build a house on?

[NotGotABimmer23]

Originally Posted by XAlp

Does stamp duty get charged if buying land to build a house on?

Yeah

[aquazi]

Originally Posted by isleaiw1

The 3% surcharge at all levels will almost definitely remain, whether they reduce the base stamp duty on second homes remains to be seen.....

Thats what i'm keen on too - but from all the rumours i have read will be first homes only.. so second homes will keep the 3% surcharge AND the existing stamp duty from 125K

[JustChris]

Originally Posted by isleaiw1

The 3% surcharge at all levels will almost definitely remain, whether they reduce the base stamp duty on second homes remains to be seen.....

agreed, its being introduced to help the housing sector and not really those into buy to let or well off 2nd / 3rd home owners.

[isleaiw1]

Originally Posted by JustChris

agreed, its being introduced to help the housing sector and not really those into buy to let or well off 2nd / 3rd home owners.

scrapping help to buy which is inflating the price of new homes (and profits of the builders) would be a start - but somewhat more controversial. Or maybe extend help to buy to secondhand homes too and level the playing field.....

[Goneinsixtyseconds]

Originally Posted by isleaiw1

scrapping help to buy which is inflating the price of new homes (and profits of the builders) would be a start - but somewhat more controversial. Or maybe extend help to buy to secondhand homes too and level the playing field.....

Wasn’t it intended to be a stimulus for building all the new homes we’re told the country needs? Wouldn’t help with that if it was across all properties.

It’d be nice to have some stamp duty relief for second homes, but I can see why they might not do that. Although, as the reduction is presumably intended to stimulate the market generally, it wouldn’t be a bad idea.

[isleaiw1]

Originally Posted by Goneinsixtyseconds

Wasn’t it intended to be a stimulus for building all the new homes we’re told the country needs? Wouldn’t help with that if it was across all properties.

It’d be nice to have some stamp duty relief for second homes, but I can see why they might not do that. Although, as the reduction is presumably intended to stimulate the market generally, it wouldn’t be a bad idea.

I thought it was to help people get on the ladder, either way, it makes new homes more attractive to buyers with limited deposits than existing homes - as shown by the builder on our estate having sold out of new 2 beds at £415k, when you can get a 3 bed a few hundred yards away (second hand, no help to buy) for £425k.....

The number of new homes the country needs to meet prospective demand wont be achieved by the private sector - so help to buy just gives the building companies, most of whom have a particularly poor reputation for quality currently, higher profits and share prices....

I think second home additional levy for stamp duty is fair and reasonable - and that comes from someone who had to pay it. I could have sold the other house and got the extra back within 3 years, so caters for the accidental landlord. And if you can afford two homes then you can afford a bit more tax generally....

Kids turn next, they both qualify for Help to Buy so will likely get in before it disappears. If house prices drop a bit this year and stamp duty reduced, could be a good time for both to act.... #housetomyselfagain

[Goneinsixtyseconds]

Originally Posted by isleaiw1

I thought it was to help people get on the ladder, either way, it makes new homes more attractive to buyers with limited deposits than existing homes - as shown by the builder on our estate having sold out of new 2 beds at £415k, when you can get a 3 bed a few hundred yards away (second hand, no help to buy) for £425k.....

The number of new homes the country needs to meet prospective demand wont be achieved by the private sector - so help to buy just gives the building companies, most of whom have a particularly poor reputation for quality currently, higher profits and share prices....

I think second home additional levy for stamp duty is fair and reasonable - and that comes from someone who had to pay it. I could have sold the other house and got the extra back within 3 years, so caters for the accidental landlord. And if you can afford two homes then you can afford a bit more tax generally....

Kids turn next, they both qualify for Help to Buy so will likely get in before it disappears. If house prices drop a bit this year and stamp duty reduced, could be a good time for both to act.... #housetomyselfagain

I don’t disagree that the stamp duty for second homes is fair. But if a general market stimulus is what is being sought, a temporary removal would help with that.

I think the Help to Buy scheme must have had two aims, helping people get on the ladder, and stimulating house building. If it didn’t have that aim, why would it be limited to new only?

[Goneinsixtyseconds]

Originally Posted by isleaiw1

I thought it was to help people get on the ladder, either way, it makes new homes more attractive to buyers with limited deposits than existing homes - as shown by the builder on our estate having sold out of new 2 beds at £415k, when you can get a 3 bed a few hundred yards away (second hand, no help to buy) for £425k.....

The number of new homes the country needs to meet prospective demand wont be achieved by the private sector - so help to buy just gives the building companies, most of whom have a particularly poor reputation for quality currently, higher profits and share prices....

I think second home additional levy for stamp duty is fair and reasonable - and that comes from someone who had to pay it. I could have sold the other house and got the extra back within 3 years, so caters for the accidental landlord. And if you can afford two homes then you can afford a bit more tax generally....

Kids turn next, they both qualify for Help to Buy so will likely get in before it disappears. If house prices drop a bit this year and stamp duty reduced, could be a good time for both to act.... #housetomyselfagain

I’m sure it doesn’t just give them higher profits and share prices. If it’s helping them sell more, they will build more.

The Tory way will be to stimulate the private sector into building the houses required if at all possible.

[isleaiw1]

Originally Posted by Goneinsixtyseconds

I’m sure it doesn’t just give them higher profits and share prices. If it’s helping them sell more, they will build more.

The Tory way will be to stimulate the private sector into building the houses required if at all possible.

You need a 15% deposit these days for a secondhand house. You can manage with 5% with help to buy.

Therefore demand for help to buy is higher and prices and profits go up.

The biggest constraint on the number they build is availability of skilled resource (hence the quality issues) and availability of land (all the big firms have significant land banks to keep them busy for next 36 to 48 months but they need that land to keep being replenished so no rush to use it - plus in normal times the value of the houses going on it goes up whilst they wait).

And yes the Tories will encourage private sector housing like housing associations to bridge the gap. Half of the new housing in Hemel seems to be Hightown Housing Association.

[Arcticdan]

Originally Posted by isleaiw1

You need a 15% deposit these days for a secondhand house. You can manage with 5% with help to buy.

We have accepted two offers on our house in the last couple of weeks both from first time buyers with approx. 10% deposits, both could not get mortgages for love or money even though they had been offered to them prior to lockdown.
Banks like Nationwide are self prophesising a market drop of 16-17% so that doesn't help.

[JustChris]

Originally Posted by Arcticdan

We have accepted two offers on our house in the last couple of weeks both from first time buyers with approx. 10% deposits, both could not get mortgages for love or money even though they had been offered to them prior to lockdown.
Banks like Nationwide are self prophesising a market drop of 16-17% so that doesn't help.

Hmmm interesting, would seem waiting about 4 months might be perfect....