HM Treasury Tweet
Discussion
So the Treasury have tweeted this today.
One slight problem, in order to save £11,250 on stamp duty, you need to be buying a property at £600K. A first time buyer on £30K. Say they get really lucky and can secure a mortgage for 5 times salary, that still leaves them having to come up with a deposit of £450K. How do you save up £450K on a £30K salary?
And as I know from my son's experience, he struggled to get a mortgage at all having saved up a 50% deposit on a £270K purchase price as a first time buyer, because of money laundering worries. Even though he could account for the money having saved up for 8 years, most lenders didn't even want to know or even see the audit trail, just an outright NO. So no one is going to lend to a first time buyer on £30K a year with a £450K deposit, even if they've inherited the £450K. They are just too terrified of getting done for enabling money laundering.
So in short, it's another load of old b
ks from this duplicitous govt. I sold a house to FTBs, they had a 200k deposit.
Double everything for London, it's quite normal.
People are now divided into 'renters' and 'inheritors' in some places.
Many of my friends have put big sums into their brats' first property.
Then there's drug dealers of course...
The other way of looking at it is:
Most FTBs in That London will have a big deposit, because without that big deposit they just ain't buyers.
I'm sure there are a few people who don't buy until their salary hits 200k.
TLDR, there is a lot of money in London, not all of it earned, legally or otherwise.
Double everything for London, it's quite normal.
People are now divided into 'renters' and 'inheritors' in some places.
Many of my friends have put big sums into their brats' first property.
Then there's drug dealers of course...
The other way of looking at it is:
Most FTBs in That London will have a big deposit, because without that big deposit they just ain't buyers.
I'm sure there are a few people who don't buy until their salary hits 200k.
TLDR, there is a lot of money in London, not all of it earned, legally or otherwise.
valiant said:
A first time buyer on £30k is most definitely not buying a terraced house in London.
A first time buyer in London is probably a couple with a joint income of £100k. Bit of parental help and savings and job jobbed. I don’t even think I’m out of touch here.
They probably also weren’t spending £600k. Maybe £400-£600k and making compromises on location.
Evolved said:
Countdown said:
Why are HMT acting as cheerleaders for the Conservative Party? Surely Govt Departments should be apolitical?
Agreed. However, the shower of st we have in now need all the support they can muster. We’d have been better recruiting a school leaver to lead us R.
OutInTheShed said:
Birkin1932 said:
Banks are simply not fit for purpose in the UK
I don't really see why it's a 'bank problem', apart from the BoE setting rates too low.It should be a rule that they can’t discriminate like that…
OutInTheShed said:
I'm sure there are a few people who don't buy until their salary hits 200k.
.
200K or 5 times my salary when I retired a couple of years ago..
It's a them and us scenario.
And this stamp duty thing; whenever I've bought a home, I've had to pay out huge (to me) sums in Stamp Duty. Galls me more than somewhat, can I claim mine back??? Ha ha.F-ng Govt, don't trust any of them, all just feathering their own nests.
Skyedriver said:
OutInTheShed said:
I'm sure there are a few people who don't buy until their salary hits 200k.
.
200K or 5 times my salary when I retired a couple of years ago..
It's a them and us scenario.
And this stamp duty thing; whenever I've bought a home, I've had to pay out huge (to me) sums in Stamp Duty. Galls me more than somewhat, can I claim mine back??? Ha ha.F-ng Govt, don't trust any of them, all just feathering their own nests.
No one stopped you from working at school, going to university, moving to London and getting a graduate job. No one then stopped you from meeting a fellow graduate with a similar income trajectory and falling in love then combining your late 20s-early 30s incomes to easily buy a property worth £600k on a 3x multiple.
Something like 20% of the half a million a year university graduates head to London. Generally the top 20%.
Meanwhile tens of thousands go to cities like Manchester or Birmingham where their ability has helped transform those cities in recent years.
What you can't do is decide not to take part and then accuse the system of being against you, or not get the right level of qualification for the city that you wish to make your way in the world in.
No one like politicians, the very nature of what draws a human to low paid positions of authority over others tends to attract the repellent and disfunctional. Plus, they have tended to take the lower paid path to control over others because they aren't good enough to compete commercially. But you don't want to make the mistake of randomly blaming them for a graduate getting a better degree and deciding to go and compete in London. Politicians are utterly irrelevant. They will come and go like the seasons but every single year a legion of you g graduates will decide to try their luck to make it in London or other U.K. cities and be paid commensurately to enable them to obtain a mortgage large enough to live near work, just like everyone else who opts to work for a living rather than scrounge.
For anyone who is feeling like blaming others during this economic downturn, may I suggest you pick up some history books at look at what those who went before you have always ended up doing since the dawn of civilisation. It's not something to be proud of or knowingly, willingly head towards.
dmahu said:
valiant said:
A first time buyer on £30k is most definitely not buying a terraced house in London.
A first time buyer in London is probably a couple with a joint income of £100k. Bit of parental help and savings and job jobbed. I don’t even think I’m out of touch here.
They probably also weren’t spending £600k. Maybe £400-£600k and making compromises on location.
And how much parental help? Again, even in London not many parents are stumping up £100K plus to help their kids. Do it for one kid and you have to do it for the others.
The tweet refers to a FTB buyer (no mention of a couple) on £30K, buying a £600K house (has to be £600K to achieve the stamp duty savings quoted.) It's f
king bks. TwigtheWonderkid said:
dmahu said:
valiant said:
A first time buyer on £30k is most definitely not buying a terraced house in London.
A first time buyer in London is probably a couple with a joint income of £100k. Bit of parental help and savings and job jobbed. I don’t even think I’m out of touch here.
They probably also weren’t spending £600k. Maybe £400-£600k and making compromises on location.
And how much parental help? Again, even in London not many parents are stumping up £100K plus to help their kids. Do it for one kid and you have to do it for the others.
The tweet refers to a FTB buyer (no mention of a couple) on £30K, buying a £600K house (has to be £600K to achieve the stamp duty savings quoted.) It's f
king bks. Nurses, teachers, coppers, bus drivers, etc all will only earn around what? £30-50k p/a throughout their careers? They have absolutely no chance of buying a terraced house in London, even in the s
te areas so it’s galling for those to read that tweet whilst they commute in from miles away (and still can only afford a flat).Following a complaint from Martin Lewis, HM Treasury have withdrawn the tweet and issued an apology.
"Whilst the figures were statistically accurate, we recognise that assumptions were made about the typical first time buyer profile that weren't reflected. We take responsible messaging seriously, which is why we've deleted the tweet."
"Whilst the figures were statistically accurate, we recognise that assumptions were made about the typical first time buyer profile that weren't reflected. We take responsible messaging seriously, which is why we've deleted the tweet."
TwigtheWonderkid said:
Following a complaint from Martin Lewis, HM Treasury have withdrawn the tweet and issued an apology.
"Whilst the figures were statistically accurate, we recognise that assumptions were made about the typical first time buyer profile that weren't reflected. We take responsible messaging seriously, which is why we've deleted the tweet."
No bad thing. Could they also let us know how much tax Martin pays while gibbing off like a hero to the poorest in society and taking their money? "Whilst the figures were statistically accurate, we recognise that assumptions were made about the typical first time buyer profile that weren't reflected. We take responsible messaging seriously, which is why we've deleted the tweet."
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