Future stamp duty rates

tocadast

Does anyone know when the next budget is to be presented and can someone look in their crystal ball and forecast what may happen to house purchase stamp duty??

We are considering buying a house just over the 3% threshold and will be gutted if we start only to find that the threshold goes up shortly after we complete (does that make sense?).

Thanks

Altarf

The budget is traditionally around March, but in recent years there has also been a pre-budget report in the autumn.

Will the 'slab' effect of SDLT be changed? Who knows, it certainly has an undesirable distortive effect on the market, but given it's history the impact has been increased over the years not decreased.

£250k band was introduced in 1997 at 1.5%,
increased in 1998 to 2%,
increased in 1999 to 2.5%,
increased in 2000 to 3%,

The only recent decrease in tax has been increasing the nil rate up to £125,000, but given how many properties sold for less than £125k, it won't have cost Gordon much to do that, and many would have benefited from the disadvantaged areas relief anyway.

Gorgeous_George

Make an offer just under the threshold. They probably expect itanyway.



GG

tocadast

Thanks folks...very useful info.

RiskAdverse100

Whenever Stamp Duty was increased in the budget the higher rate only applied to transactions where contracts were exchanged after budget day.

Where contracts had already been exchanged or where a purchase had been completed then the lower rate applied.

RiskAdverse100

Dead_Eye_Jones

I think if you like the house enough then go for it, sure you may lose out on the rare chance it changes in your favour and indeed it would be gutting. But hey, you have the home you want. Unless of course money is the only factor here, but personally I think a house should be a home first. What ya gonna do next March, wait another year incase it changes to a more favourable position, keep on waiting indefinitely...?!

Sometimes you will win on these things, sometimes you will lose, it all averages out though.

PoorDave

tocadast wrote:

Does anyone know when the next budget is to be presented and can someone look in their crystal ball and forecast what may happen to house purchase stamp duty??

We are considering buying a house just over the 3% threshold and will be gutted if we start only to find that the threshold goes up shortly after we complete (does that make sense?).

Thanks

What if it goes down?

From past experience it seems that the rate is more likely to go up than down, and the threshold is unlikely to move.

Don't buy for a price between 250k and 275k. It's not worth it.

bunking_off

I sold a house around about the threshold a couple of years ago. I priced it just over the threshold (£255k), on the basis that it allowed a combination of buyer the ability to believe they'd "got a deal" by knocking me down, and to exploit the loop-hole around furniture/fittings...ie sale price was £249,999 + £2k for furniture/carpets.

They've tightened up on the carpets loophole now, but I believe you can still use it so long as the amount paid is a reasonable sum for them. Also, in meantime, house prices have obviously softened so you may find that someone asking e.g. £260k might take £250k.

Sapphire

Also, in meantime, house prices have obviously softened so you may find that someone asking e.g. £260k might take £250k.
_____

Not in London, they haven't - they are still on the up in my area (Kingston Upon Thames). Wish the insanity would stop. Not bothered for myself, since I already have a property, but it's going to be disastrous for many buyers who have stretched themselves hugely (and foolishly, I think). The higher the prices go, the bigger and longer:eek: the fall will be. Amazes me that people didn't learn from the dot.com boom/bust. I can't believe that people (some with young children) are actually remortgaging in order to buy holiday homes - a questionable idea anyway, given what such actions are doing to rural communities.

Sorry to go a bit off topic.

bunking_off

Perhaps I should have said softened then firmed up (sounds like a dodgy p0rn film!). House prices where I sold (SE) went into reverse, but have now gone up again (property sold at £252k sold again 2 yrs later for £250k but would now be worth approx £300k...it's actually getting on for 4 yrs since I sold).

Interestingly, prices where I bought (NW) went up by approx 45% over the 1st couple of years but have gone nowhere since...market's all over the place.