Stamp Duty

The bidding wars will happen anyway as people were holding back on putting properties up for sale but the S.D. rule will bring more houses onto the market so hopefully bidding like this will slow. And estate agents have more commission so more money to spend in the economy. And it will also allow more people to buy new housing which is a main factor in changing S.D. really. It’s funny how they say we are short of houses when so many are empty for many years and so many people have second homes.

Just heard an estate agent on the radio preening about the fact that the announcement has created an increased demand and that he'd just been involved in a bidding war between 2 couples, and the house had finally gone for well over the asking price. Or, in other words, a cut in stamp duty is generating an increase in house prices (so less tax to fund essential services and more money into the pockets of estate agents, who usually work for a percentage of the final sale price).

DD1 works for a major builder - she’s had to go into work today, on her day off to deal with customers asking about the stamp duty, which has actually been paid by the Builder. Some are upgrading or buying new extras with the ‘windfall’ or just having the cash.
Her friend is an Estate Agent and says she’s busy with prospective purchasers who had viewed a property but decided they couldn’t make a realistic offer, but now can.

I’m sorry ‘gillybob’ feels miffed, but this is good news for many. It’s also helped a friend who is divorced and just had her offer on a property accepted - she’s now got a bit more left to spend on furnishings.

X

Not me but my relative is now going to sell and this will help her, help the ones in chain below and quite likely help the one above her in the chain, due to amounts involved. So a good thing for many people as it is a fair chunk of money not to have to pay it out.

Our buses, trains are extortionately priced just the same and a load of bread /litre of fuel is exactly the same
gillybob We had noticed that some food, fuel is in fact cheaper in a city a few miles away from us than in our small town (same supplier). If we do have to go for other reasons, DH always makes sure to fill up with fuel there.

Council races ? Really ?

Council taxes !

Clevedon

Put our house on the market just before lockdown so hoping this is now going to boost viewings

Young friends of ours did that and have about 10 viewings lined up which the estate agent will handle for them.

Not only that but the cost of living is also higher. Higher priced houses means higher council tax ( or whatever it is called now!)

Higher house prices absolutely does not mean higher council races Rumpunch . I live in one of the poorest LA’s in the country and we have some of the very highest council taxes . It actually works in reverse as poorer LA’s have a bigger burden on their finances and do have higher CT’s .

Apart from the cost of housing I don’t think there’s any difference in prices North v South . Our buses, trains are extortionately priced just the same and a load of bread /litre of fuel is exactly the same .

Put our house on the market just before lockdown so hoping this is now going to boost viewings

I live in the 3rd most expensive place to live in U.K. according to some poles done few years ago. Can’t get a 2 up 2 down for less that £600.000. Londoners buying up houses in this area all the time. I do think it’s good incentive for first time buyers.

I do hope it doesn't encourage greedy people to raise the price of their house. They deserve for it to sit there unsold if they pull that trick!

I am pleased about it. It reduces my outlay on the hoped-for move by £10,500 - not to be sneezed at. And it means I could, if I wished, reduce the price of the one I am selling to get more people through the door without leaving me with no savings.

Unfortunately my plans to move can't be brought forward enough to take advantage of this however a friend had put her house on the market this week so is hoping to benefit, but she certainly isn't selling because of it. Why would anyone?

I don’t think it’s intended for us oldies, but rather to kick start the housing availability so encouraging younger people to move now.

I am in the process of getting back on the ladder but unfortunately I will not qualify for SDLT exemption in full as my name is still on the deeds of the matrimonial home, so I have to pay the surcharge rate of 3% of the full price which is a hefty chunk of money. I've had to get an interest only mortgage to buy a new home
in need of renovation to get something affordable while the divorce is sorted out but I think it is better than continuing to rent on a small flat. The interest only mortgage is a bit less than the rent I have been paying, and at least the new place will be my home and I will have a garden again. I may be lucky in that I could get a refund of the SDLT if my husband agrees to sell matrimonial home within two years. Unfortunately he can't afford to buy out my share, I wish he could as it would make my life easier as I would not have to pay a mortgage on my new place if I had the cash. Hopefully though, the temporary SDLT will incentivise my husband to sell and buy something for himself. So it could be welcome good news after a period of hardship. Fingers crossed

I stand corrected Franbern. I don’t usually believe what I read without checking first. Just looked up Gov.uk and I see there is normally a sliding scale.

Main point was that they are hoping the money saved on stamp duty will be used to buy things for the new home which TBH people usually do anyway.

There may be a shortage of buyers due to many still on furlough or having been made redundant. And of course there may be a bit of a temptation for prices to increase given the tax holiday. I won't be moving.

Rumpunch I'm not sure about higher priced houses equating to higher council tax in the country as a whole as it depends on the rating bands in a particular council area.
Yes, the council tax on more expensive properties in any area is in a higher band.

I can't speak for gillybob but I'm sure she has posted previously about relatively high council tax in her area.
Whereas Westminster, with a proportion of very expensive housing, has a low rate of council tax.

Avalon, =not quite true, that stamp duty starts at £300,00 That is only for first time buyers. For everyone else stamp duty starts at £125,00. I paid it last year when I purchased my flat for £190,000.

The people who purchased my house in London would have paid out a lot in stamp duty.

Just a 'Heads Up' for anyone on here talking about putting/have put their properties on the market and in the process of selling and buying - why not join us on the specific thread for this )which is now in its sixth thread)

I would dearly love to move house ! Moved here 30 years ago with my now ex. My three children are now grown up and live between 150 and 300 miles away. I would so like to move nearer to them. But my nonagenarian parents live 100 miles from me and as they are needing more and more input I feel really stuck. I have a couple of good friends here but not a huge network and I have two part time jobs - at 59 I don’t know if I’d get another job in this day and age. I feel like I’m wasting my time and achieving nothing in my life atm.

My DD and SiL had planned to move this year. They had just finished main Structural renovations and were just about to have carpets fitted when lockdown came. ( still bare boards with small children eeek). I think this will spur them on to get things finished and get it on the market for beginning of next year. They need more space and will be selling a 3 bed ‘starter home’. There next house will probably be in the 320-350k price bracket so they will definitely benefit from a few thousand. We’ve been toying with downsizing ( our property went on the market about 7 yrs ago but then things changed. ) Now both heading towards retirement I’m very tempted.

gillybob

TerriBull

Sorry Gillybob not intending to rub salt into wounds, I know there is an enormous disparity in house prices as to the different areas around the country. Where I live you can't get a 1 bedroomed flat for less than about £320,000

Obviously with the wages to match Terribull . Cheaper houses here, but some of the lowest wages in the country.

You would like to think that dearer houses equals higher wages - but it doesn't. There is a proportion of high earners from the city and surrounds but the rest of us earn no more or barely more than the lower house price areas. Not only that but the cost of living is also higher. Higher priced houses means higher council tax ( or whatever it is called now!)

It's amazing how house prices in London have changed. I met some old friends the other day (both teachers) who live in Islington. They bought their house 40 plus years ago when they were both starting out in teaching. The area has gone up and their house is now worth several million. They are surrounded by media luvvies and politicians and no way could they have afforded to buy that house now.

X post Avalon

It really is good news for everybody moving house, but it goes beyond that. It means people can employ tradesmen to do up the property they buy thus giving work to those who may have been unemployed.

I dared to count up our house moves yesterday, 14 in total. I dread to think how much we have paid in stamp duty every few years. It has never been anything I have allowed to sway my decisions, but I appreciate for some it is a big factor.

I have sympathy for those of you who can't move at the moment due to other reasons.