UK Landlord Forum / Life

Stamp duty  has been axed for properties selling for less than £175,000. But there is a catch...well, kinda. It's a "special offer", because the deal is only available for the next 12 months. Why? I'm assuming because of 2 reasons:

1) the government will lose too much money.
2) it may push a sudden increase in property purchases

What happens after 12 monthes? It's not clear yet, but I guess it depends on how the market is at the time.

From tomorrow, the 1% band threshold will rise from £125,000 to £175,000.  Someone buying a home for £175,000 will save £1,750 under the scheme, which is likely to cost the Treasury £600m.

The government estimates half of all property transactions will now be exempt from stamp duty - up from one third when the threshold was £125,000.

It's a start, but I doubt people will be in any hurry to start buying like Donald Trump yet.

More here.

Well the Government had to be seen to be doing something, but will this really help kick start the property market again?

Personally, I think it won't have that much effect.  The biggest issue facing first time buyers (who surely this measure is aimed at) is not a couple of grand for stamp duty but rather needing to find an ever increasing amount for a deposit (originally because of rising prices, now because of shrinking Loan To Values on mortgages) and jumping through ever more complex hoops to qualify for an increasingly unaffordable mortgage.

I'd like to see stamp duty scrapped completely but I don't think the Government would ever walk away from that kind of money for nothing.

Quote from: MichelleMcDines on September 02, 2008, 09:00:07 PM
Well the Government had to be seen to be doing something, but will this really help kick start the property market again?

Personally, I think it won't have that much effect.  The biggest issue facing first time buyers (who surely this measure is aimed at) is not a couple of grand for stamp duty but rather needing to find an ever increasing amount for a deposit (originally because of rising prices, now because of shrinking Loan To Values on mortgages) and jumping through ever more complex hoops to qualify for an increasingly unaffordable mortgage.

I'd like to see stamp duty scrapped completely but I don't think the Government would ever walk away from that kind of money for nothing.

I completely agree.

The biggest problem is definately getting the mortgage. I've noticed that a lot of lenders wanting a 25% deposit. On top of that, the best deals on the market have an extortionate product fee attached to it.

It won't really made much difference, because in reality, while stamp duty may have been eradicated for some people, the price of getting a mortgage has gone up. So back to square one...

BTW, Michelle, I like the name of your website

Seems as though we're all in consensus that the new Stamp Duty brackets won't really help...

Metro- Brown attacked for 'waste of time' stamp duty suspension

Financial Times - Measures unlikely to lure more buyers

Times Online - £1.6bn rescue package for home buyers will not work and may do harm, say industry chiefs

Mail online- 'A complete waste of time': Darling's 12-month stamp duty holiday dismissed as 'political sticking plaster'

Daily Express- £175,000 STAMP DUTY HOLIDAY A 'WASTE OF TIME'

...etc