stamp duty holiday will end in march

geoffky

Some of us thought that they would extend the stamp duty holiday for first time buyers but here is what was published in the budget.

The government is publishing analysis showing that the stamp duty land tax relief for first-time buyers has been ineffective in increasing the number of first-time buyers entering the market.

“This relief will therefore end on March 24 2012 as planned. The government is instead prioritising more effective measures which provide better value for money as set out above and in its housing strategy.”

poppysarah

50% off council houses though with money to be spent on building new ones.

Not entirely sure that's a good idea though.

GAH

It was inneffective really though, no first timers rushed out to buy just beacuse their stamp duty was exempt, although it was a bonus to those that did buy.

I just posted on another thread, and said the some sort of relief or re-structuring of the stamp duty tiers would help middle movers (it certainly won't cure a problem) who are finding it difficult to move.

[Deleted User]

It'd be nice if they'd move the boundaries a bit (and i say this as someone who just forked over £9k in stamp duty this week, for a normal semi-detached house)

The government rubbed it's hands together as the house prices went through the roof whilst stamp duty boundaries stayed the same. Did they try to fix the stupidity in the system? No

House costs 249k - stamp duty is £2490
House costs 251k - stamp duty is £7530

Stupidest tax ever

geoffky

ringo_24601 wrote: »

It'd be nice if they'd move the boundaries a bit (and i say this as someone who just forked over £9k in stamp duty this week, for a normal semi-detached house)

The government rubbed it's hands together as the house prices went through the roof whilst stamp duty boundaries stayed the same. Did they try to fix the stupidity in the system? No

House costs 249k - stamp duty is £2490
House costs 251k - stamp duty is £7530

Stupidest tax ever

The above just proves what a stupid way it is worked out..
we saved on ours as my wife was a first time buyer but as you say it was just a bonus and not a reason why we bought.

newDude

geoffky wrote: »

The above just proves what a stupid way it is worked out..
we saved on ours as my wife was a first time buyer but as you say it was just a bonus and not a reason why we bought.

So, to get the discount, did you have to buy in just her name?...or as joint, but class her as first time buyer?
Thanks

[Deleted User]

It's worse, because the stupidity of the system can hold down prices in an area.

Imagine you're buying a house for £240k.. if the stamp duty doesn't change, you'll find that your price gets knocked back under the £250k mark for quite a while as no one wants to pay the extra stamp duty. It's like there's a mystical price bracket that properties just won't get priced/sold at

Personally, i think the stamp duty rate should reflect the council tax band it's in - so there might be a bit of equality around the country.

geoffky

newDude wrote: »

So, to get the discount, did you have to buy in just her name?...or as joint, but class her as first time buyer?
Thanks

Just in her name for six months then solicitor added mine..we were cash buyers and that makes a difference as a mortgage company would not entertain it.

newDude

geoffky wrote: »

Just in her name for six months then solicitor added mine..we were cash buyers and that makes a difference as a mortgage company would not entertain it.

Thanks, i'll remember that if i can purchase an investment before the holiday ends next year.

billybear1

Whilst it may not be encouraging new buyers, it certainly is HELPING them to move! To save the extra £1500 for stamp duty on a reasonably priced house means I won't be able to move out for another month as I have to save that too!

Brilliant!