Would the Tory 20% drop for first time buyers, reduce the price of old builds?

lukeh23

Regarding the conservative proposal house builders being exempt from certain taxes, and in turn going for 20% under value...

Just thinking, if someone can get a new build for twenty percent less, then would the existing housing stockof 2-3 beds normally snapped up by FTB's drop in value?

The logic being, why would I pay that when I can get a new place for 20% less?

I know quite a few 'if's', such as if the Tories are elected again and them actually following through on policy, but if they did would this be a possible?

IveSeenTheLight

lukeh23 wrote: »

Regarding the conservative proposal of new houses exempt from tax, so going for 20% under value...

Just thinking, if someone can get a new build for twenty percent less, then would the existing housing stockof 2-3 beds normally snapped up by FTB's drop in value?

The logic being, why would I pay that when I can get a new place for 20% less?

I know quite a few 'if's', such as if the Tories are elected again and them actually following through on policy, but if they did would this be a possible?

Not heard the details, but Stamp Duty is not 20% so why is there 20% "under value" being mentioned?

purch

lukeh23 wrote: »

Just thinking, if someone can get a new build for twenty percent less, then would the existing housing stockof 2-3 beds normally snapped up by FTB's drop in value?

It'll depend entirely on how many are built and where.

If they build 100 of these in a large town of 100,000 people, then it won't have much effect.

If it's 100 in a small town of 10,000 people it will have a much larger effect.

Graham_Devon

As purch says, it's too small to have an effect, unless the majority of these 100k builds (note, thats up to 100k) are built in mainly one area.

I personally doubt much will come of it at all to be honest and is more likely to be forgotten about with something else coming along later down the line effectively shelving this proposal.

princeofpounds

Again, more pointless schemes on an ad hoc basis, when easing planning permission would solve much of the problem structurally.

Labour used to love this stuff - in my mind it's a sign of an administration that runs out of ideas... so not happy to see the Tories indulging in this stuff either.

Zelazny

Might be a touch cynical, but I can't help wondering if the sellers will just whack 20% on top of the price before "reducing" them by 20% again...

Thrugelmir

lukeh23 wrote: »

Just thinking, if someone can get a new build for twenty percent less, then would the existing housing stockof 2-3 beds normally snapped up by FTB's drop in value?

May impact the BTL market.

CLAPTON

well that target is UP TO 20,000 per year


will the 20,000 be additional and if so to what ?
how do we know that these properties wouldn't have been built anyway?


the 20% reduction is on what price : there is no 'price ' for a property as it all depends upon supply and demand so the reduction is merely a matter of opinion


if the government has all this 'brown' field space available why isn't it all being released now?


all a load of pre election nonsense.




but no, it will have absolutely no effect on the price of the existing stock

IveSeenTheLight

Thrugelmir wrote: »

May impact the BTL market.

LOL, Thrugs, that's the second thread I've seen you linking that it may impact BTL's

Work it through, how likely is this to impact BTL's when posters are already lamenting the minimal impact to house prices overall.

There is a shortage of both owner occupier and rental houses.

This news should be welcomed but will likely have a minimalised impact on prices / rent.

chewmylegoff

I still don't understand how you can discount a property. Do you have to sell it at a fixed price to the first person who comes along and bids for it? If so then anyone wanting to buy one of these will need to have a mate/parent/partner who works for a house builder/estate agent.

Otherwise when anyone who is under 40 and is a FTB can bid for it, it's going to sell at market price whatever you initially list it for. You could offer to give it away for free if you liked, it would still go for market price.

padington

chewmylegoff wrote: »

I still don't understand how you can discount a property. Do you have to sell it at a fixed price to the first person who comes along and bids for it? If so then anyone wanting to buy one of these will need to have a mate/parent/partner who works for a house builder/estate agent.

Otherwise when anyone who is under 40 and is a FTB can bid for it, it's going to sell at market price whatever you initially list it for. You could offer to give it away for free if you liked, it would still go for market price.

Flat price, first come first served. Maybe with a points based need hut hierarchy system like we do with council houses. So 100 points if you're considered a 'key worker ', 25 extra points if you have no convictions, 25 extra points if you're qualified in a particularly necessary profession like science or engineering etc.