Stamp Duty Changes

TheBlueHorse

Will these affect house prices?

Should people that paid more in the last 12 months or so get a rebate?

thequant

TheBlueHorse wrote: »

Will these affect house prices?

Should people that paid more in the last 12 months or so get a rebate?

Maybe they should pay back any capital gains they have made in this period as well ?

TickersPlaysPop

I've advocated the move away from the tiered system for stamp duty.... I've never read or heard a sensible argument for why the tiered system was chosen.

Now it has happened.... I'm wondering if the tiered system was a crude way to insert brakes against house price inflation at certain points in the scale?

Where I live the houses are all around the stamp duty threshold of 250k. So there is a barrier to properties moving up in value, because prices are heavily influenced by previous sale values. My area is not active for sales, so it seems like when a house is worth 260k it sells for less than 250k... Also, buyers are less likely to buy a house at 270-290 because of the threshold.

So it seems these difficult price points helped to slow inflation? Will we now see more inflation as a direct effect of this move away from the tiered system?

padington

We will see cheap property that is now taxed less go up and expensive property go down. Chelsea down, walthamstow up.

It's taken the thunder from Milliband's plans that's for sure. I imagine the only thing he might do is make the dynamic more extreme. So Chelsea even more down and walthamstow even more up possibly after May.

Interestingly a friend I know who was going to sell is now having second thoughts, they were going to sell because the price of the house was approaching a new stamp duty level. Now they're thinking, great, no rush.

It might not only mean differing prices but fewer properties coming to the market for some price points.

The purpose of the slabs, I think, was to cause forced selling, from knowing it might be harder to sell later, if you don't do it now.

carslet

It means no chance of a HPC

Generali

Realistically the impact will be somewhere between tiny and nil: we're talking about a few hundred quid for the vast majority of places and on a £2,100,000 Chelsea pad the tax apparently increases by £19,000, ie less than 0.1% of the value of the house.

The change is really about getting rid of some silly distortions caused by a badly thought out tax change.

purch

TheBlueHorse wrote: »

Should people that paid more in the last 12 months or so get a rebate?

Why ?

Is Stamp Duty any different to other Taxes ?

Should those who paid less Stamp Duty for past purchases than they would under this new system receive a bill ?

purch

Generali wrote: »

Realistically the impact will be somewhere between tiny and nil:

The change is really about getting rid of some silly distortions caused by a badly thought out tax change.

Yes, although you can see how the property rampers will get all excited.

My SiL recently bought a house for £ 875,000 and paid £ 35,000 SD. If she had completed today she would have paid £ 33,750 SD, a difference of £ 1,250. She spends that sort of amount on a pair of shoes :eek:

wotsthat

TheBlueHorse wrote: »

Should people that paid more in the last 12 months or so get a rebate?

I guess your cousin, the white horse, recently purchased a new home and paid more under the old system.

As TWH is on the naughty step I don't think Martin Lewis is going to start up the claim bandwagon on his behalf.

TheBlueHorse

thequant wrote: »

Maybe they should pay back any capital gains they have made in this period as well ?

to who?...................

Ageing_Disgracefully

TickersPlaysPop wrote: »

I've advocated the move away from the tiered system for stamp duty.... I've never read or heard a sensible argument for why the tiered system was chosen.

Now it has happened.... I'm wondering if the tiered system was a crude way to insert brakes against house price inflation at certain points in the scale?

Where I live the houses are all around the stamp duty threshold of 250k. So there is a barrier to properties moving up in value, because prices are heavily influenced by previous sale values. My area is not active for sales, so it seems like when a house is worth 260k it sells for less than 250k... Also, buyers are less likely to buy a house at 270-290 because of the threshold.

So it seems these difficult price points helped to slow inflation? Will we now see more inflation as a direct effect of this move away from the tiered system?

I suspect that you are right in your analysis. In reality the savings in stamp duty are likely to be negligible compared to the extra that people will have to pay for property as a result of this change.


Why the chancellor didn't look to see what effect the change had on the housing market in Scotland before introducing it here I don't know.