Stamp Duty Threshold Increased to £125,000

silvercar

Where ever the cut offs there will be problems. Try selling a house at £270k - no-one will offer you over £249k!

amazon_spice

Big deal eh?! :rolleyes:

mentat_2

From a sellers perspective (mine) I will now have trouble selling my flat for £129,995. Which means I will have trouble buying a bigger house as I can't afford the deposit anymore. Which means I won't be able to sell the flat.

Which means the first time buyer actually loses out on this rather than gaining as another property disappears off the market. So it's not necessarily a good thing for first time buyers.

Doe anyone know when this change actually comes into force?

highguyuk

Change comes into force with completions from the 6th April 2006 onwards.

Tassotti

Hi Mentat,

You want to sell for 130K? What do you actually expect to achieve for this property? 128, 127. Sell at 125K, 2K over 25 years is very minimum outlay

Tassotti

Hi Mentat,

You want to sell for 130K? What do you actually expect to achieve for this property? 128, 127. Sell at 125K, 2K over 25 years is very minimum outlay

Would have thought this benefits you (contradictory to my earlier post) as you will never sell at the 130K price.

Jay1b

Well your have to move eventually, so the first time buyer isnt worse off at all. First time buyers are generally better off now, as there is a better choice.

People who will gain would be those with houses that would sell for £120-£125K if it wasnt for stamp duty. Now people who will be worse off are those trying to sell at £126-£130K.

Personally for me, this raise is great. It SHOULD save me £1250, assuming the vendors dont mind splitting it to £500 for f&fs.

Heth_2

mentat wrote:

From a sellers perspective (mine) I will now have trouble selling my flat for £129,995. Which means I will have trouble buying a bigger house as I can't afford the deposit anymore. Which means I won't be able to sell the flat.

Which means the first time buyer actually loses out on this rather than gaining as another property disappears off the market. So it's not necessarily a good thing for first time buyers.

Doe anyone know when this change actually comes into force?

You won't necessarily loose out. We looked at buying a house for 130 and had already decided we wouldn't offer more than the 120k stamp duty threshold, whereas now we would have been happier going up to 125k. If you're determined to only sell for the asking price then of course you loose out, but lots of house go for quite a few k less than the asking price!

Tassotti

Think thats what I said in a roundabout way

sm9ai

This will do nothing for the average ftb. They need a price reduction of around 30-40% not a paltry £1000 off due to no Stamp Duty. And don't even get me started with shared-equity.