Petition: Stamp duty holiday to be triggered upon exchange of contracts

BikingBud

There are many other issues that could/should be addressed in how we in manage the property market in the UK. SDLT may be one of those considered in the overhaul of the system but tinkering as we have seen with schemes such as HTB, SDLT holiday, 95% Govt supported loans are all designed for one purpose, to get people to pay more money for houses and its not for the benefit of people within the system.

Comments from March: https://www.moneysavingexpert.com/news/2021/03/martin-lewis-interviews-chancellor-rishi-sunak---the-key-questio/?_ga=2.97289372.204647953.1619388542-110761785.1576323325

Lavendyr

Ah well, at least I can agree to disagree with people politely without being unpleasant.  
@BikingBud you are absolutely right. 

SpiderLegs

Apparently these days if someone disagrees with something you say, providing explanations as to why, well that means they are being unpleasant.

🤦‍♀️

Lavendyr

@Spiderlegs here are some examples of unpleasant, unproductive and unhelpful commentary.

"Get a grip." - Nile E Coyote.
"Well I don’t believe any of that because I have just bought a nice green hat and only people who have got green hats know about stamp duty and stuff." - yes this was you, and it was entirely unproductive and unnecessary. 

As I said, I appreciate the other views that were constructive and sensible, including those that you, spiderlegs, posted before this. 

Edit to add: My concern is purely that the market is about to topple off a cliff with the end of the SDLT threshold, even with the tapered fall that is legislated. Does it affect me personally? No. Does it affect thousands of transactions in progress which are struggling because of the demand on mortgage lenders, estate agents and conveyancers? Absolutely. 

AnotherJoe

I think your concerns about a "cliff" are misplaced. Of the few thousand transactions in flight, lets say a proportion of those are disrupted because those buyers are foolishly way too close financially and this tips them over the edge.

Well there are plenty of others who cant find houses to buy at the moment (just look at the posts in here) so they can step in when these houses become available. There's a massive shortage of houses so the fact some will have to downgrade their ambitions  and there are others who can now buy that house that was previously snapped up by someone who really couldn't afford it and overbid. Recall the poster  here buying a £600k house saying they needed to drop the price by £3k because they had effectively run out of money. Well, those buyers misplaced others who could have bought it (they offered £30k over AP). So, they will buy it instead. And the "£600k buyers" can buy something for say £550k.  Or even £597k.

Plus of course, your idea is still a cliff edge, its just a different cliff. It would make literally two or three weeks difference to anyone except those buying newbuilds (and those buyers are perfectly at liberty to adjust the contract to account for this its not as if there's no warning. )

An actual non cliff edge solution would have been tapering down over say 6 months, on say a per month basis, but no you are just arguing people should jump off a different cliff. Sales will still fall through in your "solution" (if the problem is as bad as you think, I disagree) just not the small proportion that got to exchange not completion.

Unless your argument is that people exchange right after offer, and then be locked in prior to hosue valuations, surveys and the like. But hopefully it isnt is it?

I'll set a remind, lets look again in October. I'll bet £10 to a charity of our choices there is no carnage in the market then.

Lavendyr

Thanks @AnotherJoe for your considered response. I actually agree with your suggestion of tapering down gradually. There is already tapering in place in the govt plans but I think it could be more tapered to reflect actual house prices.
I don't doubt that the market will still be fine in October. Stamp duty isn't the only factor - let's not forget the new gov backed 95% mortgages. 

Thrugelmir

Lavendyr said:

Stamp duty isn't the only factor - let's not forget the new gov backed 95% mortgages. 

Any exposure to the taxpayer will be mitigated. There's no giveaway of money involved. 

davilown

Does it affect thousands of transactions in progress which are struggling because of the demand on mortgage lenders, estate agents and conveyancers? Absolutely. 

Does it actually matter? No. This whole situation has caused an unprecedented rush on having to buy a house for many. If they were not organised in the first place then unlucky, move on.

There has already been an extension to this - why should the tax payer subsidise sellers onward purchases anymore?

Would be nice if it was going to be a cliff edge with house price to ‘tumble’ but that won’t happen.

pelirocco

As an owner of a Removal Company in my experience completion and exchange tend to be very close  to each other these days
The stamp duty  holiday has proved very interesting to say the least especially  in March with too many people  trying to get a moving date before the end date. It doesn't seem as frantic at the moment but we will see what June brings
From speaking  to our customers its very obvious  solicitors have taken on too much work as everything  is taking  a long time and there are always  last minute hold ups

TBG01

solicitors have taken on too much work as everything  is taking  a long time and there are always  last minute hold ups

If I wanted to complete on Friday but there was any removable companies available until the following week, would that be the Solicitors fault?