Stamp duty 3% increase (2016 budget), and its effect on future house prices?

michaels

ViolaLass wrote: »

It would be very silly to overpay by nearly 50% to avoid a 3% tax.

Unless you thought it was a permanant rise rather than a blip.

westernpromise

You do have to wonder what such late entrants are thinking though. There have been very clear signals that our Labour chancellor wants to end BTL. The regulatory risk is appalling.

cells

westernpromise wrote: »

You do have to wonder what such late entrants are thinking though. There have been very clear signals that our Labour chancellor wants to end BTL. The regulatory risk is appalling.

Assuming they dont want a housing crash then any tax or regulation changes would have to be such that they cause a gradual sell off of BTL properties into the owner pool.

That is to say the regulatory risk is tempered by the economic and banking and political risks of causing a crash in house prices.

Dan83

How does the 3% tax effect anyone who is left a house in a will or parents wanting to off load a house by putting it in a child's name (child as in their child, 18yo +)

p00hsticks

Dan83 wrote: »

How does the 3% tax effect anyone who is left a house in a will or parents wanting to off load a house by putting it in a child's name (child as in their child, 18yo +)

Assuming in England
if you are left a house in a will there's no stamp duty to pay (there may be inheritance tax due on the estate though). Stamp duty is not payable on a gift unless there is an outstanding mortgage on the property

https://www.gov.uk/guidance/sdlt-transferring-ownership-of-land-or-property

Dan83

Thanks for the reply, clears things up abit for me in the future.

chewmylegoff

Conrad wrote: »

I'm selling a buy to let to buy another in spite of the SD. It's just a business cost. What's the alternative, buy a £150k subway franchise all of which is pure cost?

Double meat double cheese please. I knew you did something like this but I would have never guessed subway.

pathtofreedom

I don't think the stamp duty will make a big difference, but the tax changes coming in will do. I already have friends in london who have been told their rent will be going up 20% because of it.

Generali

pathtofreedom wrote: »

I don't think the stamp duty will make a big difference, but the tax changes coming in will do. I already have friends in london who have been told their rent will be going up 20% because of it.

What do they plan to do? Up sticks and get out or suck it up?

There'll be plenty of LLs without mortgages that won't have additional costs to pass on and I do wonder why Landlords aren't already charging a higher price if the market can bear it.

If my LL proposed increasing my rent by 20% I'd propose he went and boiled his head as the Scots charmingly put it.

caronoel

Generali wrote: »

What do they plan to do? Up sticks and get out or suck it up?

There'll be plenty of LLs without mortgages that won't have additional costs to pass on and I do wonder why Landlords aren't already charging a higher price if the market can bear it.

If my LL proposed increasing my rent by 20% I'd propose he went and boiled his head as the Scots charmingly put it.

It can be no surprise that this will lead to a dramatic rise in rents and tax evasion, as happened when the Irish tried to introduced a similar tax grab in the late 90s.