No stamp duty <£250k

lemonjelly

Really2 wrote: »

Great news for anyone looking to buy and FTBers.
There can be no argument it lowers any buyers cost (under £250K) by 1%.
Can't see why anyone wanting houses to be more affordable would say this is a bad thing as it is a housing cost.

In reality it brings hardly anything in in the way of cash to the government so I dare say it could be funded by raising tax else where or cutting costs.
You never know they might put it on the sellers costs instead.

My concern when I started reading this thread, was that this sounds great for people still wanting to get into, or wanting to increase their BTL. My initial reaction was that this would only be of benefit to people who already hold some form(s) of wealth. Which was why I relly liked the following post:

mystic_trev wrote: »

If the Government really wanted to help the FTB, why not do it as a First Home Buyer Tax Credit, like they do in the US. This Govenment likes Tax credits so much I can't understand why they don't? All this will do is push up prices in the £230,000 to £245,000 range, and reduce them in the £255,000 - £275,000 range.

And then liked this one even more:

mystic_trev wrote: »

I notice the BBC article now says it will be for FTB's only

Of course, it is still all rumour at the mo, if it does turn out to be true, the devil will be in the detail.

Really2

lemonjelly wrote: »

And then liked this one even more:

I think if it is for FTB only even better as it is helping the right people and will only cost around 30-40% of revenues. (Based on FTB numbers)

BigJonnyB

It is time that the stamp duty system was changed - but that would mean a change on all tiers. It will be rather stupid to jump from nothing to 3% at 250,000. Constantly changing this 'FTB' rung does nothing to address the inbalances of the other tiers.

It will be grossly unfair to offer this as a FTB incentive only. What separates them from other home owners? I don't know where I'd stand - I bought a house with my mum 9 years ago when I was 20 for uni. It cost £90,000, and I had to pay stamp duty on that.

We sold 3 years ago. For 6 years I have been with my partner, and have managed to save £125k towards a £250k house. We were planning to buy in about a year. We have been patient, and didn't jump in to borrow some horrendeous amount that we couldn't afford. My partner is a FTB - but I suppose I technically am not. Why should someone else get a tax benefit (i.e. no stamp duty), when I wont? Nor was it ever available to me when I was a FTB. It either needs to be scrapped for all, or payable for all.

seraphina

Needs to be ringfenced for FTBs otherwise it's just another BTL incentive.

Really2

BigJonnyB wrote: »

I
It will be grossly unfair to offer this as a FTB incentive only. What separates them from other home owners?

The majority of home owners have seen their homes out perform inflation which means FTBers have got further and further away from owning.
So in reality current owners should be able to afford it "more" because of the capital they have realised in selling their previous house.

Emy1501

It should be scrapped for anyone looking to buy a home to live in whether they are FTB's or not. The money lost should be made up by charging a higher stamp duty to those buying property as an investment where they are not going to live.

sarah_elton

Really2 wrote: »

The majority of home owners have seen their homes out perform inflation which means FTBers have got further and further away from owning.
So in reality current owners should be able to afford it "more" because of the capital they have realised in selling their previous house.

I lost money on the property I owned and lived in (have been in rented for over a year now). Currently buying at £231k.

Mortgage lender defines us as first time buyers. Will the Govt if this measure comes in? I doubt it. :mad:

Really2

sarah_elton wrote: »

I lost money on the property I owned and lived in (have been in rented for over a year now). Currently buying at £231k.

Mortgage lender defines us as first time buyers. Will the Govt if this measure comes in? I doubt it. :mad:

I think after 6 months you become a FTB again (even on LR stats etc).
I am sorry to here you lost but as I said the majority have gained.

But we are still waiting for the facts yet they may scrap it all together

lostinrates

Why isn't stamp duty a set percentage instead of stepped? Would tat no be simpler for the market?

sarah_elton

lostinrates wrote: »

Why isn't stamp duty a set percentage instead of stepped? Would tat no be simpler for the market?

Or progressive like income tax - so you pay 0% on the first £125k (£175k? Whatever it is now), 1% on the amount from that to £250k, and so on. Then there wouldn't be these crazy no man's land of prices just above each threshold.

I've never understood why it's structured as it is. To make more money I assume.