Labours plan to scrap stamp duty for first time buyers

Milifandom

What do people think of labours plan to scrap stamp duty for first time buyers for houses under 300K?

audigex

Makes no difference at all to many and virtually no difference to many more, but it depends where you are in the country.

In many areas in the north first time buyers aren't over the £125k threshold anyway, and even if they are are usually going to save save in the region £1k on a £175k home.

You may notice if you're a FTB in the £250-300k range and can save £3-5k, but a FTB doesn't strike me as likely to be spending £250-300k outside of London and a few other specific areas.

Even then, though, how many FTB have much more than a 10% deposit? So at most you're saving £100-500 up front and £900-4500 off your mortgage. Over 25/30 years, that's not something you're going to notice.

Frankly I think it's pointless: stamp duty isn't preventing people buying a house, the inability to save a deposit while renting is. If you can afford a deposit of £5-30k, you can afford another £100-500.

If you've got a big deposit (20-30%) and are buying a house in that £240-300k range then yes, you stand to gain: but how many FTBers are in that position? I'd venture not many, as they'd have to be earning £40k+ (combined) or £50k+ (individual) and have £50k saved up. A strange combination of requirements that I really doubt many people will meet.

For everyone else it's a gesture at best. People need help with their deposit, not a 0.3-1.6% discount on the total price. So I only have to save 99% of the deposit I required before, even if I was liable for stamp duty in the first place (I'm not)?

Gee, thanks, Labour!

agrinnall

I think that this should be in the Debate House Prices and the Economy board.

Bluebirdman_of_Alcathays

Demand, demand, demand, without commensurate supply measures, are an inevitable disaster.

And "pledging" 1m extra homes doesn't cut it - a manifesto pledge is hardly a surefire sign something is going to happen if you get into Government - just ask the Lib Dems!

audigex

Bluebirdman nailed it there: the problem isn't stamp duty, the problem is supply.

All that will happen here is that house prices will go up by whatever stamp duty was. There wasn't a huge crowd of people sat there saying "Oh no, I'm £1000 short of my dream house because of this cursed stamp duty"

Help people save deposits, build more houses. It's not rocket science.

SnooksNJ

Milifandom wrote: »

What do people think of labours plan to scrap stamp duty for first time buyers for houses under 300K?

I think Stamp Duty should be scrapped for everyone.

Old_Git

I think sellers should pay stamp duty not the buyers .

lindsaygalaxy

Where we live the stamp duty pricing change was meant to help buyers. All it has done is push houses up by about £25k! Houses previously at £250k are now able to go above. I see this idea as no different.

wrkactjob

If Labour get in how quickly will this be implemented?

If your due to complete in June or July and Labour win will you still have to pay the duty? Can Stamp Duty be delayed or is there a law saying it has to be paid straight away?

agrinnall

wrkactjob wrote: »

If Labour get in how quickly will this be implemented?

If your due to complete in June or July and Labour win will you still have to pay the duty? Can Stamp Duty be delayed or is there a law saying it has to be paid straight away?

SDLT is due at the date of sale. I doubt whether a Labour government could introduce the holiday on day 1, and June/July would be pushing it, but it's possible it might be applied retrospectively, so it could be that first time buyers would have to pay it then have it refunded. At least by the time you complete you'll know who the government is (hopefully!) and have a better idea of the timing and implementation of the change.

audigex

lindsaygalaxy wrote: »

Where we live the stamp duty pricing change was meant to help buyers. All it has done is push houses up by about £25k! Houses previously at £250k are now able to go above. I see this idea as no different.

IMO this is the most likely outcome

If you know your buyer previously had a budget of £275k including stamp duty, and now don't have to pay £25k of that, you still know they can afford £275k. House prices in that £125-300k band go up and nothing else really changes.