Do we really need the Stamp Duty Holiday?

Caramac

Locally the market was moving quickly before the scheme was announced. After it had been announced there were more houses coming onto the market but not selling as quickly. We had decided to move before it was announced.

Scotbot

The treasury lost money from SDLT when Osbourne increased it as a result of fewer transactions. If the aim is to maximise tax revenue resuming previous rates may not be a wise idea. Who knows what Sunak will do but I wouldn't assume a return to previous rates.

MobileSaver

ProDave said:

Who will want to buy and pay several £000 more than they had to last week.

Probably tens of thousands of people every month who want to buy their own home rather than pay a landlord's mortgage for the next fifteen years.

blue_max_3 said:

I think rather like the eat out scheme, the restaurants will be forced to continue it out of their own pockets. Just deduct the stamp duty off the price straight away.

I think you are dreaming. With restaurants you can just walk a few yards down the road and visit a different restaurant, and many restaurants need to get you through their door to survive. With property, there's a limited supply of houses and the vast majority of sellers do not need to sell and most simply won't if asked for a stamp duty discount.

blue_max_3

MobileSaver said:

I think you are dreaming. With restaurants you can just walk a few yards down the road and visit a different restaurant, and many restaurants need to get you through their door to survive. With property, there's a limited supply of houses and the vast majority of sellers do not need to sell and most simply won't if asked for a stamp duty discount.

I wasn't suggesting you actually ask. I think it will be factored in. You're not going to pay 15k more for a property the next day (metaphorically speaking).

MobileSaver

blue_max_3 said:

You're not going to pay 15k more for a property the next day (metaphorically speaking).

That's the point, though, if you want that particular house then you are going to have to pay more the very next day after the stamp duty holiday ends (and cue the threads on here starting 1st April from people who missed the SDLT holiday deadline.)

You can't honestly believe that one day/week/month after the holiday ends that every house in that price bracket will be reduced by £15k? This is no more likely to happen than every seller putting their prices up by £15k when the holiday was announced...

Young_Turk

MobileSaver said:

blue_max_3 said:

You're not going to pay 15k more for a property the next day (metaphorically speaking).

That's the point, though, if you want that particular house then you are going to have to pay more the very next day after the stamp duty holiday ends (and cue the threads on here starting 1st April from people who missed the SDLT holiday deadline.)

You can't honestly believe that one day/week/month after the holiday ends that every house in that price bracket will be reduced by £15k? This is no more likely to happen than every seller putting their prices up by £15k when the holiday was announced...

Vendors won't reduce asking prices by £15k, just as they didn't increase them by £15k. Instead what happens is decreased or increased interest and offers by buyers. 
Vendors won't necessarily reduce asking prices when stamp duty goes back up. They may wait longer to sell and the number of properties on the market may grow faster than the number of buyers. If that happens (especially if new vendors price more competitively) they may eventually decide it's better to reduce their price than wait.

MobileSaver

Young_Turk said:

Instead what happens is decreased or increased interest and offers by buyers. ... If that happens (especially if new vendors price more competitively) they may eventually decide it's better to reduce their price than wait.

Agreed but I think you'll see a big difference between the haves and the have nots; owners of bedsits in Edinburgh will probably end up taking a haircut while nicer properties with gardens and/or in less crowded areas will probably see a mini boom.

Angela_D_3

Young_Turk said:

MobileSaver said:

blue_max_3 said:

You're not going to pay 15k more for a property the next day (metaphorically speaking).

That's the point, though, if you want that particular house then you are going to have to pay more the very next day after the stamp duty holiday ends (and cue the threads on here starting 1st April from people who missed the SDLT holiday deadline.)

You can't honestly believe that one day/week/month after the holiday ends that every house in that price bracket will be reduced by £15k? This is no more likely to happen than every seller putting their prices up by £15k when the holiday was announced...

Vendors won't reduce asking prices by £15k, just as they didn't increase them by £15k. Instead what happens is decreased or increased interest and offers by buyers. 
Vendors won't necessarily reduce asking prices when stamp duty goes back up. They may wait longer to sell and the number of properties on the market may grow faster than the number of buyers. If that happens (especially if new vendors price more competitively) they may eventually decide it's better to reduce their price than wait.

I suspect quite the opposite, there will be less properties coming to the market if the sellers can't make the numbers work they'll sit tight

bolwin1

No, the Stamp Duty Holiday is Unnecessary

Although it's saved me £15,000, I still voted no - I'd have moved anyway. 

SharkMoney

No, the Stamp Duty Holiday is Unnecessary

We did not need a SD holiday, we needed a permanent increase in the threshold that was originally suggested by Boris but never materialised. 

It’s fairly obvious to me they will extend it or adjust the threshold to £500k permanently - it was on the cards anyway. 

Why they have decided to do a holiday, maybe a PR stunt but I do think it causes anxiety for those come Q4/Q1 who may not be able to complete their sales on time. 

Will chains collapse at midnight when the scheme ends? I know atleast 2 couple who would need to pull out if they missed the deadline.