2 Year stamp duty holiday called for - Balls

Loughton_Monkey

HAMISH_MCTAVISH wrote: »

Daft idea.

Stamp duty isn't the problem. Mortgage rationing is.

Is this not a "Head in the Sand" response?

... oops...

I mean "Head in a Rubbish Bin" post.

http://www.bbc.co.uk/news/uk-scotland-north-east-orkney-shetland-19783214

Glad they got you out alright, but may I suggest that in future if you want to read the House Price section of the Sunday Times, then perhaps buy one? Don't try to get a copy someone else threw away.

Graham_Devon

One of the guardian commentors made a fairly decent point on this one!

To build 100k houses, with £2.5bn, you are looking at a total build and land cost of 25k per house.

Either
A) Balls has guffed up
It's some seriously cheap housing
C) He is hoping no one will notice and he can stick with the headline
D) He is expecting more than tripple the value from the sale of 4G.

RUN_RABBIT_RUN

Graham_Devon wrote: »

I don't think anyones going to save "ooo, 2 grand off? I'll go buy a house". Same as we don't all rush to buy a brand new car just because there is a VAT discount being run.

yeah just like that car scrappage scheme 'failure' from 2009 -

http://www.guardian.co.uk/money/2009/may/29/car-scrappage-success

or that boiler scrappage scheme 'failure' from 2010 -

http://www.clickgreen.org.uk/news/national-news/121175-govts-green-boiler-scrappage-scheme-ends-after-reaching-125k-target.html

or even the 'failure' of the last stamp duty holiday when it was drawing to a close and buyers certainly did not rush to buy houses -

http://www.guardian.co.uk/money/2012/may/16/first-time-buyer-mortgage-lending-stamp-duty

globalds

what if house prices are not too high..

I can't see how so many people can be wrong so many times or how a market with so many players could be fixed .

If houses are supposed to be this high ...which makes sense as so many other people buy houses other than just home owners ..building 100,000 homes won't alter much ..
houses are this price I think because they appear to be a pretty safe bet.

Individuals can moan about unfairness ...but generally it is because they are locked out ...I can't think of any home owners who become all philanthropic once they are invested on the property ladder

Graham_Devon

RUN_RABBIT_RUN wrote: »

yeah just like that car scrappage scheme 'failure' from 2009 -

http://www.guardian.co.uk/money/2009/may/29/car-scrappage-success

or that boiler scrappage scheme 'failure' from 2010 -

http://www.clickgreen.org.uk/news/national-news/121175-govts-green-boiler-scrappage-scheme-ends-after-reaching-125k-target.html

or even the 'failure' of the last stamp duty holiday when it was drawing to a close and buyers certainly did not rush to buy houses -

http://www.guardian.co.uk/money/2012/may/16/first-time-buyer-mortgage-lending-stamp-duty

I already stated it provides a rush at the end, as people who ARE buying houses try to complete.

Do YOU believe people buy houses because they can "save" 2k in stamp duty?

It's all about context, and I simply don't believe there are all that many people out there, with the funds ready, that will all suddenly rush ahead and say "oh, I think I'll buy a house" simply because theres a stamp duty holiday, creating new demand.

Obviously, as I said, if people know theres a start and end time of a holiday, they will delay or hurry purchases. That's just moving demand. Not creating it.

System

I think a stamp duty holiday simply brings forward a purchase, if they aren't paying stamp duty then that's extra money for the deposit fund, therefore less time spent saving a deposit.

Pennywise

A stamp duty holiday would be a wasted opportunity. The whole thing needs a re-work.

The "step" changes need to be scrapped for a start. Where there's a step, say at £250k, the higher rate should only be on the excess over £250k, not on the full price. That would give you a smoother curve through the bandings rather than step changes. It's also stupid to have such a higher percentage at just £250k. That level isn't expensive housing - it's normal for the majority of homes. Rising from 1% to 3% isn't logical.

I think it should also be changed to be a tax on the seller rather than on the buyer. The seller could then be exempt if they've lived in it as their home (like the private residence relief for income tax). So you either don't pay it (or pay a reduced amount) if you sell your home, but pay more if you've sold a second home, or investment property, or inherited property etc.

The politicians do far too much tinkering around with the existing tax structure to try to make it work (all taxes, not just stamp duty). They'd be far better dealing with the fundamental flaws.

wymondham

Houses cost too much, thats the issue. Stopping Stamp Duty wont solve this.

Thrugelmir

If someone can afford £250k on a house, then £2,500 stamp duty shouldn't be an issue to save. Only take a couple of months.

Stamp duty holiday has more to do with attracting new votes than any beneficial impact on the UK economy. This will all be forgotten by the next election. As won't make the Labour manifesto.

There's already too much interference in financial and property markets. Until Governments stand back and let economic events unravel themselves. We'll be no nearer a solution to the problems.

brit1234

FTBFun wrote: »

Interesting - so not paying up to £2,500 for you is "not an issue?"

No. As I have said before I have a large deposit, costs, stamp duty and furniture fund saved.

Its house prices which are an issue to me. You know when you have all above and a good wage yet still priced out that housing is overvalued.

I would rather the 4 gen money be used to pay off our debts so we don't have to cut public services so much than go to some dodgy builder.