Govt to announce Stamp Duty Cut for first time buyers

HPC_Ghuol_Hunter

https://www.thesun.co.uk/news/4902639/philip-hammond-will-cut-stamp-duty-for-first-time-buyers-in-bid-to-attract-young-voters-with-2000-tax-boost/

:beer::j:money::cool::T

A welcome helping hand up onto the ladder for all FTBs. As you can imagine this news has gone down like a sack of spuds over on goon central. How they can be so spiteful to others how have real dreams and aspirations beyond renting a bedsit for life is rather strange.

lisyloo

He is said to be considering a cut in the tax, levied on the sale of property, which would apply only to first-time buyers.

It's hardly news worthy that he's considering it.

wymondham

I thought it was the massive deposits needed and extortionate cost of housing that's the issue rather than a few grand stamp duty?

mrginge

HPC_Ghuol_Hunter wrote: »

A welcome helping hand up onto the ladder for all FTBs...

...except those that buy under 125k

michaels

Apparently HA debt is to be removed from the National accounts (one straight from the Gordon Brown school of accounting) allowing housing associations to borrow to build.

I don't know what this will do for their borrowing costs as presumably if their debt is no longer govt debt it will no longer have a govt guarantee behind it either(?)

My suggestion: Allow lenders to relax rules on lending multiples / affordability for those taking long fixes - currently borrowers are stressed at a base rate of 5.5%(?). This should be reduced for those who take 5 and even more so 10 year fixes and instead be based on the monthly repayment at the fixed rate rather than what the repayment would be at 5.5-7%

System

"He is said to be considering a cut in the tax, levied on the sale of property, which would apply only to first-time buyers."

Stamp duty is levied on the purchase, not the sale.

GreatApe

michaels wrote: »

Apparently HA debt is to be removed from the National accounts (one straight from the Gordon Brown school of accounting) allowing housing associations to borrow to build.

I don't know what this will do for their borrowing costs as presumably if their debt is no longer govt debt it will no longer have a govt guarantee behind it either(?)

My suggestion: Allow lenders to relax rules on lending multiples / affordability for those taking long fixes - currently borrowers are stressed at a base rate of 5.5%(?). This should be reduced for those who take 5 and even more so 10 year fixes and instead be based on the monthly repayment at the fixed rate rather than what the repayment would be at 5.5-7%

There isnt really a FTB problem only 14% of locals are in the private rental sector and that figure can not go to zero as we need mobility and options in the economy. Eg students, young workers, people migrating internally, people who rent and own etc

However if they want to reduce private renting further perhaps they should just allow the kids to take 'student loans' for housing. So an 18 year old (or anyone who has not gone to university) can take out a £30k government loan paid back on the same terms as the student loans to buy their first home. Some people cry that is a terrible idea but why we already have LISA which get a £1k government bonus from 18-50 which is £32k and that is not a loan its free.

A couple who are FTBs would thus have £60k of 'student loans' maybe call em FTB-Loans and that £60k is about a 50% deposit in most the country. A 3 bed terrace in Birmingham is £120k so the couple can put a 50% deposit down via the FTB-Loans and get a mortgage for the remaining £120k. They can repay the loans on the same terms as the student loans so if they earn over a certain amount etc

mrginge

What happened to your big plan of just giving everybody 30k?

GreatApe

mrginge wrote: »

What happened to your big plan of just giving everybody 30k?

Not everybody, just 18 year olds gift them £30k each to spend on a higher education or a house or a pension. If gifting is too problematic/difficult-sell then have it as a loan on the same terms as the current student loans. It is simply extending the student loans scheme to be able to buy an education or a home. With choice many students would forgo £30k on modern dance at Stoke university and instead opt to use the money as a 50% deposit for a starter home in stoke.

economic

GreatApe wrote: »

Not everybody, just 18 year olds gift them £30k each to spend on a higher education or a house or a pension. If gifting is too problematic/difficult-sell then have it as a loan on the same terms as the current student loans. It is simply extending the student loans scheme to be able to buy an education or a home. With choice many students would forgo £30k on modern dance at Stoke university and instead opt to use the money as a 50% deposit for a starter home in stoke.

Lol to be fair a dance degree vs home both from stoke is a pretty close call.

mrginge

GreatApe wrote: »

Not everybody, just 18 year olds gift them £30k each to spend on a higher education or a house or a pension. If gifting is too problematic/difficult-sell then have it as a loan on the same terms as the current student loans. It is simply extending the student loans scheme to be able to buy an education or a home. With choice many students would forgo £30k on modern dance at Stoke university and instead opt to use the money as a 50% deposit for a starter home in stoke.

The problem with your ‘loan’ is that even less people will be paying it back than the students (isn’t it about 70% that will currently never get repaid?).
Calling a (effective) sunk cost a loan might fool a few people but I think most of us realise that it’s just one big can-kicking fudge.