Stamp duty cut

aurelieweill

The only way to abate the housing crisis is making more dwellings available. Two options: increase inheritance tax and build more homes by making more land available and by getting the public sector to build, too.!

Fella

Arklight wrote: »

I am sorry but I am not reading a link about economics from a newspaper 80% of who's content is about aliens, alien vistors, people in Peru finding mummified alien babies, aliens on the moon, aliens walking among us, lost alien civilisations buried under Newport Pagnell, UFOs over the channel, and celebrity cleavage.

The Express is garbage but the story was reported the same in any number of papers.

GreatApe

Get rid of stamp duty and add an annual charge onto property perhaps via the council tax
This would increase transactions and allow better allocation of housing.
For instance if you are in a big house you don't really need there would be an additional upto £560 annual incentive to move into a small property.

It is also much more reasonable for people who have to move if you buy a house and five years later you lose your job and need to move to get another one the government hit you over the head with a additional stamp duty tax that can be more than £10,000 while your twin in the same house who did not need to move does not need to pay stamp duty again

£80 Band A
£160 Band B
£240 Band C
£320 Band D
£400 Band E
£480 Band F
£560 Band G
£640 Band H

It would have to be phased in else it would be unfair for the people who bought just recently. So move the stamp down by 10% a year and start adding this property tax by 10% a year so at the end of 10 years the stamp duty is gone and this new system in place

GreatApe

And of course another way stamp duty is unfair is it does not apply to social homes but does apply to owners and renters. Adding this property tax would add £160 a year to social homes (assuming they are mostly band

System

GreatApe wrote: »

there would be an additional upto £560 annual incentive to move into a small property.

Why would increasing the demand for small property ease the shortage of small houses?

GreatApe

Clifford_Pope wrote: »

Why would increasing the demand for small property ease the shortage of small houses?

If you move a grandma out of her 6 bedroom home into a 1 bedroom flat overall housing demand (floorspace/bedrooms) has fallen.

economic

GreatApe wrote: »

Get rid of stamp duty and add an annual charge onto property perhaps via the council tax
This would increase transactions and allow better allocation of housing.
For instance if you are in a big house you don't really need there would be an additional upto £560 annual incentive to move into a small property.

It is also much more reasonable for people who have to move if you buy a house and five years later you lose your job and need to move to get another one the government hit you over the head with a additional stamp duty tax that can be more than £10,000 while your twin in the same house who did not need to move does not need to pay stamp duty again

£80 Band A
£160 Band B
£240 Band C
£320 Band D
£400 Band E
£480 Band F
£560 Band G
£640 Band H

It would have to be phased in else it would be unfair for the people who bought just recently. So move the stamp down by 10% a year and start adding this property tax by 10% a year so at the end of 10 years the stamp duty is gone and this new system in place

i was thinking about this with a friend actually. we thought of a consumption tax on property, an annual charge on the then value of the home. seems like a sensible thing to do as it frees up empty/ large houses for those who need and afford it.

this should also reduce wealth gap across generations.

Cakeguts

aurelieweill wrote: »

The only way to abate the housing crisis is making more dwellings available. Two options: increase inheritance tax and build more homes by making more land available and by getting the public sector to build, too.!

What lots of people miss is this. You can build as many dwellings as you like but unless someone buys them it doesn't help increase the supply of places for people to live. All it does is increase the number of new properties. If the builders can't sell the homes to private buyers, housing associations or private rent companies then places to live don't increase. The only way you can increase the number of homes available is if the new ones being built get sold to someone. So if you want to increase the supply of homes you have got to find a way to get them sold and occupied as quickly as possible. If this doesn't happen you will just get lots of estates of new empty properties.

mrginge

Cakeguts wrote: »

What lots of people miss is this. You can build as many dwellings as you like but unless someone buys them it doesn't help increase the supply of places for people to live. All it does is increase the number of new properties. If the builders can't sell the homes to private buyers, housing associations or private rent companies then places to live don't increase. The only way you can increase the number of homes available is if the new ones being built get sold to someone. So if you want to increase the supply of homes you have got to find a way to get them sold and occupied as quickly as possible. If this doesn't happen you will just get lots of estates of new empty properties.

This doesn’t make sense.

The market is formed by suppliers who are willing and able to sell and buyers who are willing and able to buy.

Once a house is sold it’s not part of the supply side.

If there are 1m homes and 900k are occupied then the supply of houses to the market is 100k. If that is supposed to satisfy the demand of 200k buyers then we have a problem.

Mortgagefreeman

westernpromise wrote: »

You reckon? The first page is full of the usual whining negativity about how £300k houses will just go up to £305k.

There are crashtrolls - visible in that thread - who are angry that anything that enables them to buy will enable an existing owner to sell - to them - and therefore it's bad.

I see the CountOfNowhere’s leaving the Country for about the fifteenth time in the last ten years. :rotfl:

http://www.housepricecrash.co.uk/forum/index.php?/topic/231682-they-just-wont-stop/