Did i hear Cameron say £250k stamp duty for eveyone last night?!

pault123

On leaders debate last night Cameron mentioned the £250k stamp duty threshold for everyone - but didn't mention first time buyers. Has anyone read his manifesto and can confirm this is true?

I've always though the £250k for first time buyers was ridiculous as if a FTB can afford a £250k pad I certainly think they can afford stamp duty!

Its not just FTB that are struggling in the housing market, people looking to upsize are often on just as tight a budget, so a couple of grand on top of the already high costs certainly hits the pocket.

£200 for everyone would be a more sensible rule.

But if he's going to give £250k for everyone then :money::money::money:

tonimalony

No, they should help FTB by reducing stamp duty for them! £250k for a pad in London does not mean you are buying a swanky mansion! You are still only getting a 1 / 2 bed in a regular area. Yes, FTB could move out of London but why should they when they have been born and brought up there? Other people get to buy where they have been brought up so why not Londoners?! So many people I know are frantically trying to save up for a deposit and if the encouragement of no stamp duty under 250k encourages them then why is this a bad thing? I agree that perhaps out of London if they can afford 250k then they shouldnt get out of stamp duty because they can obviously afford it but in London, anything they can do to encourage the lower end of the market and more often than not the lower end of the market is supported by FTB (properties under 250k in London IS the lower end of the market!) then it should happen. they need to encourage this in London!!

pault123

One rule for London another for everywhere else? hmmmmmmm

I'm sure he said £250k for everyone anyhow :j

beecher2

tonimalony wrote: »

I agree that perhaps out of London if they can afford 250k then they shouldnt get out of stamp duty because they can obviously afford it but in London, ....

How ludicrous. Someone buying a house for 250k outside of London can 'obviously afford it' but if they buy in London then they're poor wee souls who should be helped out. I know a great many people who can't afford to buy where they'd ideally like to live so they commute from cheaper areas - of which there are plenty within commuting distance of London. On the other thread you say your joint income is 100k so forgive me if I believe you should be able to afford your house without a tax break.

To the OP, yes that is what Cameron said though I don't know if it is a manifesto commitment or not.

tonimalony

I didnt say I shouldnt pay stamp duty... some people should some people shouldnt. What I meant is that I think in general FTB in London have a harder time than perhaps out of London because of the higher prices. Yes people out of London also struggle I am sure, but what I was trying to get across is that with prices (generally) lower outside of London, a 250k property would be a fairly decent house (normally purchased by non-first time buyers). 250k properties in London would (more often than non) be 1 or 2 bed flats more likey to be purchased by FTB'ers. Therefore it is not reasonable to say as the original OP suggested, that if a FTB'er can afford a 250k property they can also therefore afford stamp duty. Yes, they are buying an expensive property but to get their 25% deposit, they have had to save up for years to get a 30, 40 or 50k deposit at least so being relieved of stamp duty is a welcome respite! Outside of London, you can buy a very good property suitable for a FTB'er for a fraction of the cost - less saving up, less money put in etc. Not saying at all there should be one rule for London and one rule for everyone else but FTB i think should be helped. Especially in London. Maybe there should be one rule for london and one for everywhere else? Maybe that would get the lower end of the property market moving again??

brit1234

pault123 wrote: »

Its not just FTB that are struggling in the housing market, people looking to upsize are often on just as tight a budget, so a couple of grand on top of the already high costs certainly hits the pocket.

Agreed. How about instead we allow house prices to fall by raising interest rates. We all agree that house prices are ridicously overvalued. Raising interest rates will bring housess back to more normal values. This will make the prices from up sizing less and allowing easier moves up the ladder.


I keep hearing brown say he is going to keep interest rates low, however interest rate selection was mean't to be free of political intervention since it was passed to the BOE. :mad:

pault123

tonimalony wrote: »

I didnt say I shouldnt pay stamp duty... some people should some people shouldnt. What I meant is that I think in general FTB in London have a harder time than perhaps out of London because of the higher prices. Yes people out of London also struggle I am sure, but what I was trying to get across is that with prices (generally) lower outside of London, a 250k property would be a fairly decent house (normally purchased by non-first time buyers). 250k properties in London would (more often than non) be 1 or 2 bed flats more likey to be purchased by FTB'ers. Therefore it is not reasonable to say as the original OP suggested, that if a FTB'er can afford a 250k property they can also therefore afford stamp duty. Yes, they are buying an expensive property but to get their 25% deposit, they have had to save up for years to get a 30, 40 or 50k deposit at least so being relieved of stamp duty is a welcome respite! Outside of London, you can buy a very good property suitable for a FTB'er for a fraction of the cost - less saving up, less money put in etc. Not saying at all there should be one rule for London and one rule for everyone else but FTB i think should be helped. Especially in London. Maybe there should be one rule for london and one for everywhere else? Maybe that would get the lower end of the property market moving again??

Has it occured to you people generally earn more in London!

tonimalony

they do... but not always! And ftbs (generally in the earlier stages of their career) will not earn much more than their counterparts in other areas of the country (for example in several cases I know of where people are on grad schemes, the companies set company wide salaries for graduates regardless of where they work).

Has it occured to you that things COST considerably more in London also?! House prices however go up exponentially in London, not in line with the general rise in cost of living compared to other areas.

pault123

tonimalony wrote: »

they do... but not always! And ftbs (generally in the earlier stages of their career) will not earn much more than their counterparts in other areas of the country (for example in several cases I know of where people are on grad schemes, the companies set company wide salaries for graduates regardless of where they work).

Has it occured to you that things COST considerably more in London also?! House prices however go up exponentially in London, not in line with the general rise in cost of living compared to other areas.

i'm not forcing you to live there!

ALP2010

Interesting debate this one I have to say pault123 has a very valid point. I'm a FTB in London (hopefully exchanging contracts next week) and am paying £320k for a 2 bed garden flat. Some people will unfairly assume that means I that stamp duty is more 'affordable' for me than someone buying a cheaper property. But the reality is I've busted my balls to save enough money and compromised majorly on lifestyle and disposable income. I'm not bitter about it because you make your choices in life and this is what I want - but it is annoying when people assume that just because you are buying an expensive property means you can afford Stamp Duty more than others.
Generally, a FTB spending £320k outside of London will get a LOT more for their buck and you could argue they are therefore making a more 'extravagent' purchase and should be taxed more!
Ho hum.

pault123

£320k round here would get you :eek:



http://www.rightmove.co.uk/property-for-sale/property-14948664.html