RICS & HBF call for Stamp Duty holiday
Discussion
A couple of weeks ago, RICS called for a stamp duty holiday to dangle a money-saving carrot in front of buyers in order to get house sales moving after we're out of lockdown. HBF backed the call. Now Rightmove and estate agents are lending their weight to the cause.
They're also suggesting extending the Help To Buy scheme beyond the original end, which is April 2021, to try and assist developers in selling new build properties.
Whilst it's a nice idea, and could see some significant savings for those who already have a sale/purchase in motion, and could tempt those thinking of buying, would it really be enough to help? The government is going to lose out on billions of pounds in stamp duty anyway from reduced sales, and the associated VAT, will they really want to cut that back even more? Is it possible that they'll see that loss as acceptable in comparison to supporting the other businesses that all benefit from the sale of houses, both new and old?
I have a vested interest in seeing how this pans out; not only do I have a purchase ongoing (if it wasn't absolutely necessary, I'd be tempted to sit tight and wait the whole thing out), but I also work for a small/medium housing developer, so my job and being able to pay for my new house is also dependant on the housing market.
https://www.cityam.com/coronavirus-knight-frank-an...
https://www.mortgagesolutions.co.uk/news/2020/04/2...
They're also suggesting extending the Help To Buy scheme beyond the original end, which is April 2021, to try and assist developers in selling new build properties.
Whilst it's a nice idea, and could see some significant savings for those who already have a sale/purchase in motion, and could tempt those thinking of buying, would it really be enough to help? The government is going to lose out on billions of pounds in stamp duty anyway from reduced sales, and the associated VAT, will they really want to cut that back even more? Is it possible that they'll see that loss as acceptable in comparison to supporting the other businesses that all benefit from the sale of houses, both new and old?
I have a vested interest in seeing how this pans out; not only do I have a purchase ongoing (if it wasn't absolutely necessary, I'd be tempted to sit tight and wait the whole thing out), but I also work for a small/medium housing developer, so my job and being able to pay for my new house is also dependant on the housing market.
https://www.cityam.com/coronavirus-knight-frank-an...
https://www.mortgagesolutions.co.uk/news/2020/04/2...
Edited by cherie171 on Monday 20th April 17:36
I think it’s a great idea (for main residences) and not just to deal with the current situation.
Most people spend a lot of money when they buy a new house and I think the economic benefit of hiring trades & buying stuff would condensate for a loss in stamp duty.
Stamp duty is also a barrier for people making a sideways move for geographical reasons so getting rid of it would allow greater mobility for employment opportunities.
Most people spend a lot of money when they buy a new house and I think the economic benefit of hiring trades & buying stuff would condensate for a loss in stamp duty.
Stamp duty is also a barrier for people making a sideways move for geographical reasons so getting rid of it would allow greater mobility for employment opportunities.
dmahon said:
Vested interests asking for free money shocker.
A completely unnecessary, but completely predictable PH comment. I'm hardly 'asking for free money'? I'm not asking you to pay it for me am I? Not that it's actually any of your business, but I have the money is sitting there ready and waiting to pay when the time comes, saved up from the wages I earn. Yes, I would like the opportunity to spend a few thousand less on my house purchase. Would I refuse the holiday if it it came about, and force then to accept my money? Of course not, and I'm sure you wouldn't either. I'm sure that you earn enough that you could find the money to pay stamp duty as spare change down the back of your designer sofa, not all of us have that privilege, and have to save damn hard for what we want.
What I'm more concerned with, is the likelihood of the holiday happening, and if it does, whether it will be successful in it's intended benefits and hence help me to stay working for the company I actually enjoy working for.
Simpo Two said:
I don't think stamp duty stops a significant proportion of house buyers buying houses. Ergo, removing it won't make much difference IMHO.
If you're at the lower end of the market, and the stamp duty is the difference between being able to afford the house you want, or not. It might make the difference. If there are enough people at the lower end of the scale want to move, it could have a knock on effect further up. Same with extending the help to by window. I'm currently about to buy and it would be great not to pay stamp duty (London house prices...). But I can't see me risking a significant drop in house prices just to save the stamp duty. The stamp duty will be big number to pay in cash, but still a very small percentage of the house value.
Do RICS etc think that people will be happy to save a couple of percent and take the risk of a 10% drop before their next remortgage?
Do RICS etc think that people will be happy to save a couple of percent and take the risk of a 10% drop before their next remortgage?
cherie171 said:
A completely unnecessary, but completely predictable PH comment. I'm hardly 'asking for free money'? I'm not asking you to pay it for me am I?
Not that it's actually any of your business, but I have the money is sitting there ready and waiting to pay when the time comes, saved up from the wages I earn. Yes, I would like the opportunity to spend a few thousand less on my house purchase. Would I refuse the holiday if it it came about, and force then to accept my money? Of course not, and I'm sure you wouldn't either. I'm sure that you earn enough that you could find the money to pay stamp duty as spare change down the back of your designer sofa, not all of us have that privilege, and have to save damn hard for what we want.
What I'm more concerned with, is the likelihood of the holiday happening, and if it does, whether it will be successful in it's intended benefits and hence help me to stay working for the company I actually enjoy working for.
Chillax, I’m talking about RICS and Rightmove as vested interests. My point is, of course they are asking for tax breaks, like everyone else. It doesn’t mean it should or would happen.Not that it's actually any of your business, but I have the money is sitting there ready and waiting to pay when the time comes, saved up from the wages I earn. Yes, I would like the opportunity to spend a few thousand less on my house purchase. Would I refuse the holiday if it it came about, and force then to accept my money? Of course not, and I'm sure you wouldn't either. I'm sure that you earn enough that you could find the money to pay stamp duty as spare change down the back of your designer sofa, not all of us have that privilege, and have to save damn hard for what we want.
What I'm more concerned with, is the likelihood of the holiday happening, and if it does, whether it will be successful in it's intended benefits and hence help me to stay working for the company I actually enjoy working for.
Personally hope there is a stamp duty holiday to keep the value of my own house up, and I might buy a few for my kids if there was, corresponding with a short term fall in values, but I don’t have a big dog in the fight.
Edited by dmahon on Monday 20th April 19:30
dmahon said:
Chillax, I’m talking about RICS and Rightmovenas vested interests. My point is, of course they are asking for tax breaks, like everyone else. It doesn’t mean it should or would happen.
Personally hope there is a stamp duty holiday to keep the value of my own house up, but don’t have a big dog in the fight.
Fair enough. Could have done with a little more clarification on your original post. Personally hope there is a stamp duty holiday to keep the value of my own house up, but don’t have a big dog in the fight.
As I'd actually stated my vested interest, I thought it was directed at me personally.Would RICS see any direct financial gain from a stamp duty holiday, other than indirectly as their members will have more work if the market is busier?
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