Potential stamp duty cut
Discussion
Rumours rife of a potential cut to stamp duty being announced later this week. What are peoples thoughts on what will happen ?
Must admit to have a vested interested in this as due to exchange contracts on a purchase next week and complete early October so a cut would be great personally.
Must admit to have a vested interested in this as due to exchange contracts on a purchase next week and complete early October so a cut would be great personally.
I think they will announce a permanent cut for sure, but interest rates will increase at 0.75% a few major lenders pulled their mortgage deals yesterday so we are definitely in for come changes.
None of it makes sense to me, so I’m just going to crack on and concentrate on things I have control of. I just can’t see how many people will be able to afford their mortgages without doing interest only or exceptionally long terms.
None of it makes sense to me, so I’m just going to crack on and concentrate on things I have control of. I just can’t see how many people will be able to afford their mortgages without doing interest only or exceptionally long terms.
I’m hoping I’m eligible whatever the announcement is. We are due to complete on the 7th October with a hefty amount of stamp duty due, so any saving would be great as can spend it on other things instead.
My mortgage deal is decent and open until the end of the year so ultimately I can knock back completion if I need to.
Lost out last year (or whenever it was)on a house that went to best and final offers by around 15k only for stamp duty to be removed which has continued to irk me, so maybe this is fate.
Will there be a cap on property prices it applies to ?
My mortgage deal is decent and open until the end of the year so ultimately I can knock back completion if I need to.
Lost out last year (or whenever it was)on a house that went to best and final offers by around 15k only for stamp duty to be removed which has continued to irk me, so maybe this is fate.
Will there be a cap on property prices it applies to ?
Hobo said:
Don’t think reducing house prices is ever going to be a government policy, or not one that wants to stay in power.
IMO.
Not sure on that, if things continue the way they have over the last 20 years then there will be enough renters (and maybe even if sensible house owners who realise that constantly increasing prices generally only benefits downsizers and BTL investors) that there will be a tipping point where deflating prices will become a vote winner.IMO.
House ownership has been decreasing; in 2019/20, 65% of households in England were homeowners down from 71% in 2003.
In addition the age of first time buyers has been increasing (34 today, 28 in 2007).
All that said as long as it's older people who vote more than younger people it'll take a long time to get there and the pensions triple lock will also be a vote winner for a few decades yet!!
SunsetZed said:
Hobo said:
Don’t think reducing house prices is ever going to be a government policy, or not one that wants to stay in power.
IMO.
Not sure on that, if things continue the way they have over the last 20 years then there will be enough renters (and maybe even if sensible house owners who realise that constantly increasing prices generally only benefits downsizers and BTL investors) that there will be a tipping point where deflating prices will become a vote winner.IMO.
House ownership has been decreasing; in 2019/20, 65% of households in England were homeowners down from 71% in 2003.
In addition the age of first time buyers has been increasing (34 today, 28 in 2007).
All that said as long as it's older people who vote more than younger people it'll take a long time to get there and the pensions triple lock will also be a vote winner for a few decades yet!!
We'll get to a point where the only first time buyers will be ones with rich enough parents to help them out or those willing to take on 40 year mortgages.
I suppose the latter point could be the end goal, milk the population for a bit longer.
Edited by ChocolateFrog on Thursday 22 September 08:29
They make a nice cut in the profits of lots of the H2B houses so I'm not surprised they want it propped up.
Given the growing value of lots of properties, a reduction seems reasonable to ensure it doesn't become too much of a blocker of people moving but does feel like the timing is more just to prop up the housing market.
Given the growing value of lots of properties, a reduction seems reasonable to ensure it doesn't become too much of a blocker of people moving but does feel like the timing is more just to prop up the housing market.
Dsdans said:
I can confirm this WILL be the case, as I have indeed just spent a fortune on stamp duty.
It's usually how these things work.
Stamp Duty is wrong on lower value homes but reducing it now will annoy those who have paid the full rate earlier this year, last, etc.It's usually how these things work.
Any reduction in duty now will just mean they have to claw back the reduction from other areas at a time where they are talking of offering money to soften the energy "crisis".
As someone looking to move, it may personally help me but I think it's the wrong policy.
The housing market needs to stay level or even take a slight dip. This runs the risk of another rush like we had in 2020/2021.
I suppose their logic is to offset interest rate increases with savings on stamp duty to try and balance things out, but I don't like how much money the Govt are throwing around since Truss came in, like it's growing on trees.
It'll need to be paid back at some point (along with Covid)......
The housing market needs to stay level or even take a slight dip. This runs the risk of another rush like we had in 2020/2021.
I suppose their logic is to offset interest rate increases with savings on stamp duty to try and balance things out, but I don't like how much money the Govt are throwing around since Truss came in, like it's growing on trees.
It'll need to be paid back at some point (along with Covid)......
I was about to exchange yesterday and firmly put the brakes on that til tomorrow. Word is the nil banding will go up to £500,000, which to me seems like a sensible change there are not many houses left around these parts that don't incur a hefty whack of stamp duty. I am about to hand over £420k for a small, 3 bedroom ex council semi detached on a road that could be best described as up and coming (hopefully). So hardly Monarch of the Glen. Getting £11,000 back will mean a lot.
Surely this is really all just linked to new house builders and the governments need for them to keep building for both funding reasons, but also employment reasons.
The construction industry is a massive part of the economy and if house builders were to slow down this would massively effect employment levels, increase benefits claims and cost the government also massively in loss of revenue from the help to buy type scheme/s.
The reality is the government need the economy to keep ticking over, and this helps. I openly admit to having a potential vested interest in it as were due to exchange next week and complete on the 7th October, but not sure how any changes would affect the purchase as its over 1m+ so may not even be applicable to it. If it were like last time though and saved me 15/20k (or whatever it was) it would certainly be worthwhile obviously.
Re the renters/buyers issue, the government seem to be doing all they can to get people away from buying multiple properties to let out. Isn't it from 2025 when it your property is EPC level C or higher you won't be able to rent it ? That will put a lot of old housing back into the sales market. As for 40 year mortgages, is that an issue ? Most parents would like to their kids get onto the property ladder ASAP (ideally early/mid 20's I would assume), so with a lot of people working to 65/70 these days then 40 years does not seem an issue, and there is always the option to overpay anyway to reduce the term.
The construction industry is a massive part of the economy and if house builders were to slow down this would massively effect employment levels, increase benefits claims and cost the government also massively in loss of revenue from the help to buy type scheme/s.
The reality is the government need the economy to keep ticking over, and this helps. I openly admit to having a potential vested interest in it as were due to exchange next week and complete on the 7th October, but not sure how any changes would affect the purchase as its over 1m+ so may not even be applicable to it. If it were like last time though and saved me 15/20k (or whatever it was) it would certainly be worthwhile obviously.
Re the renters/buyers issue, the government seem to be doing all they can to get people away from buying multiple properties to let out. Isn't it from 2025 when it your property is EPC level C or higher you won't be able to rent it ? That will put a lot of old housing back into the sales market. As for 40 year mortgages, is that an issue ? Most parents would like to their kids get onto the property ladder ASAP (ideally early/mid 20's I would assume), so with a lot of people working to 65/70 these days then 40 years does not seem an issue, and there is always the option to overpay anyway to reduce the term.
Krhuangbin said:
I just missed on the last holiday due to a problematic chain and terrible conveyancer, and completed this year, now this. w
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