Stamp duty threshold increased to £175k for one year

BettiePage

Jonbvn wrote: »

The most you will save is GBP1750 (1% of 175k). Surely the decision to purchase a house or not will not be swayed by such a minimal amount of money?

How much does a hips cost? People are moaning about a couple of hundred pounds, so I think this will matter to them.

epz_2

anyone know the % of sales around the 175k level vs 125 level, it would be interesting to see the squashing effect on prices it has at that level.

formulaonefan

I think all those 180-220K house will not sell that easily. With house prices coming down, buyers will push down the value of those range (180-220K) to be below 175K so they don't have to pay stamp duty.

But to be honest FTB's will start to revive the housing market now. Damn! House prices are still over-priced. They have to come down!

Marc1978

I reckon this could push lower end house prices down further.

I have my property on the market for £124,995 (down from £140K). There are a number of similar properties on the market at offers over £125k in my area - the EA advised me to reduce my property to O/O £125k but I decided that it would be better to be under the stamp duty rate.

Now to differentiate my property from similar in the area I'll have to consider reducing the price again. I'm sure other people just under the old £125K stamp duty level and people just above the new £175K stamp duty level will do the same.

Penelopa.Pitstop

It means that vendors of properties around 199K will be forced to drop their prices below 175K. Unfortunately in my area, decent flats or average not very attractive houses cost around 250K and it's already after drops of the last few months.

I'm interested what will happen to house prices. I don't expect people to snap properties like crazy because of saving of £1750.

adr0ck

epz wrote: »

anyone know the % of sales around the 175k level vs 125 level, it would be interesting to see the squashing effect on prices it has at that level.

according to the bbc there were 75,000 house sales last year between 125 & 175k

Max_Headroom_3

If £1,750 worth of stamp duty was the only thing stopping my house selling I'd flipping well pay it for the purchaser if it meant a sale at sensible money.

Is this really going to make an iota of difference?

epz_2

adr0ck wrote: »

according to the bbc there were 75,000 house sales last year between 125 & 175k

cheers but I was meaning the number of homes priced between say 175k and 195k, the 125k stamp duty barrier had the effect of dragging prices down from 140k to that level as buyers loath paying that amount of tax.

it could be a bit of a swine if you had a house not selling at 220k who would normally need to drop it to say 200k suddenly competing against a lot of similar properties at 175k.

sarkin

Max do you mean sensible money to you or the buyer?

Sir_Humphrey

I think not being able to get the LTV owing to a lack of deposit is a bit more of a problem than Stamp Duty. This would have boosted the market before the Credit Crunch, but not now.

In combination with the other measure this might provide a very small boost to new builds but that would work on the assumption that the FTB was a complete tool. In London, where new build flats are over £175k, this may force builders to cut their prices.