Stamp Duty changes

poppysarah

Stamp duty - Land duty stamp tax on all £2million homes will be raised to 7 per cent from 5 per cent. Stamp duty on £2million-plus homes bought into a company, which is a way many wealthy people avoid stamp duty, will attract a punitive 15 per cent tax rate.

Read more: http://www.thisismoney.co.uk/money/news/article-2118109/BUDGET-2012-SUMMARY-Key-points-glance.html

ognum

No change to the end of stamp duty holiday either.

brit1234

Both good news for lower house prices and indirectly help first time buyers. :beer:

ognum

does anyone know what percentage of the housing stock is worth over 2 million and how any of those change hands each year?

SuzieSue

ognum wrote: »

does anyone know what percentage of the housing stock is worth over 2 million and how any of those change hands each year?

From BBC News website:

The latest statistics from the Land Registry showed that, in November 2011, there were 121 homes sold for more than £2m in England and Wales. That accounted for just 0.2% of the 57,967 homes sold that month.

Of these 121 homes, 98 were in London.

However, the move is predicted by the Treasury to raise £150m in the next financial year, rising to £300m by 2016-17.

ognum

Just Rightmoved a 30 mile search from my city and there are over 60 homes at 2 million plus, more than I thought there would be!

brit1234

ognum wrote: »

does anyone know what percentage of the housing stock is worth over 2 million and how any of those change hands each year?

It's not just those properties which will be effected. The foreign investors displaced domestic buyers to other areas which caused a ripple effect. Hopefully this will be ending.

ognum

brit1234 wrote: »

It's not just those properties which will be effected. The foreign investors displaced domestic buyers to other areas which caused a ripple effect. Hopefully this will be ending.

if you can afford a house of that price will the stamp duty make that much difference, I don't think so.

brit1234

ognum wrote: »

if you can afford a house of that price will the stamp duty make that much difference, I don't think so.

To some it will, some it won't. It's all about the maths. On top of that Countries such as Italy are imposing taxes for foreign property ownership. Italians who are at present the biggest foreign buyers will be hit by a double wammy, that will act as a discouragement.

des123

how would this all help first time buyers . i dont understand . this will not help at all people buying their first home.

cattie

It's about time something was done to bridge the gap between us poorer mortals being caught in the jump from 1%-3% on what after all is a pretty average property price nowadays. I'm pretty sure a 2% tax would give the housing market a bit of a boost for properties over the £250k mark.