Liz Truss stamp duty announcement

[Puncturedbicycle85]

I have seen that LT intends to cut stamp duty and will announce it this week. Does anyone know how quickly this will be brought in? I can’t remember how fast it was brought in when it was cut during the pandemic.

@TooMuchToDoTooLittleInclination

Well aware of that. I was replying to a PP who seemed to be suggesting SD was the only thing hindering older people downsizing but then flipped the argument to be about bill payments.

It's hardly flipping the narrative. My point is that, stuck between high heating bills and stamp duty dead money, there's no incentive for downsizers to move. But if you remove stamp duty it shifts the equation. Do accuse me of arguing in bad faith just because you don't agree with me.

Don't.

I do. Both our parents (dh and mine) have, from big houses to smaller.

It was a bit of a wrench beforehand for mine, not after though - not sure about dh’s - but they’re really happy atm for a variety of reasons. It’s still a really nice place just not the very big place we grew up in.

Bizarre move.

The amount of Stamp Duty you pay will be calculated using the applicable rate on the date of purchase i.e. completion date (as far as I am aware)

I know someone who wants to "downsize" unfortunately what they want to do is move from a 4 bedroom family home to a 2 bedroom bungalow. It won't free up any equity as they will cost roughly the same due to the scarcity of bungalows pushing the price of those up and stamp duty pegging back the cost of the 4 bedroom in that area. Yes stamp duty is also a factor but thankfully they can afford that

I imagine it’ll be effective immediately last time it was, if they delay it then it just pushes back people to complete later.

We are currently buying hoping to complete October so hoping it does get cut - although this view point is from a completely selfish point of view!

Stamp duty is a ridiculous cost so I will be pleased if there is some kind of cut. Might encourage me to start the process again after ours fell through.

That’s the one thing she’s doing that will actually help us as we are trying to sell our house.

wont help millions of people though.

I do agree for the tories it’s about making as much money for themselves as they can right now as they will be out at the next general election.

Is it a removal or just a reduction being speculated?

This has a depressing ring of truth 😔

It is such an inhibiting cost that I will welcome this. For us wanting to move and for DSS saving for a house.

Because the alternative is a property crash and that's not in the interest of the government...

What property crash? House prices have stabilised after the last bubble but are hardly plumeting.

If the government wants to steady the housing market, wait until prices start to fall then buy social housing. Rather than pissing the money away that would make a profit in the long term and help the most vulnerable, not the wealthy.

As others have implied, I expect the Tories realise they’re probably out at the next election, so the next year or two will be spent forcing through as many right wing cuts and dismantling the welfare state and wrecking public services as much as possible, to make Labour’s job as difficult as possible.

I think that's a bit simplistic. I think they will do that because they think it's the right thing to do and the cuts will bribe the electorate- rather than explicitly to damage the country.

To be clear - (and I am currently not clear at all on this!) - is she proposing a 1) stamp duty holiday like Sunak announced for covid? or - 2) is she proposing a permanent erasure of stamp duty?

if the former - it means a 6 months to yearlong issue. But if this is a permanent move - then that's a whole different entity - which is it do we know?

The Chancellor who is at the heart of this new economic policy is increasingly looking nuts

twitter.com/snaphappycat/status/1572340317033996288

No it's just going to temporarily overheat the housing market again. Short term policies when the economy is going to crumble. Robbing Peter to pay Paul as another poster said !!

I have a first class honours in Economics (albeit some years ago)... so I am not sure I fit in your generalisation.

I am a huge believer in the free market, am not a Socialist and do not believe the answer lies in handouts. I do believe in improving social mobility to make aspiration realistic but I am also not naive enough to think everyone can just pull themselves up by their bootstraps.

But I'm bloody sure this only helps the 'squeezed middle' and does diddly squat to help our countrys poorest.

I can't remember which of the plebs ministers said that people should just try and get better jobs... but as Lockdown and key workers proved... we NEED people to do every level of job. And if a having a full time job still leaves you in poverty then something is horrendously wrong.

We need policies that result in a broader distribution of wealth. I don't know what those policies are... I do not consider myself clever enough to attempt to run a country.

I expect the people who do consider themselves clever enough to do it to also be good enough people that they want to help all of the people and not just the people who vote for them.

And there, right there ^ is where my naivety kicks in.

If you view the Tory party as little more than an administrative function for fluffing the housing market, a lot of this starts to make sense.

They have nothing else to offer.

@Muststopeating

No, I think we'd have a lot in common.

given this post though, I can understand your original post even less.

If this helps the squeezed middle & gets housing moving & the eveninmunjn general, that will help people on lower incomes & benefits.

Someone linked above to a very interesting thread on twitter. Theory being that among other things it increases house building because more people would move.
On downsizing. We live in a huge house where we brought up children and are looking to move. Not particularly keen on leaving but it's very rural and we need to plan for old age. Stamp duty isn't really much of a consideration because we live in an area where £350k will buy you a big detached 4/5 bed. However it might motivate me to move sooner rather than later.

I said some months ago there may be another prop like stamp duty pause as they will do anything to keep it going

Can't stand the Tories, particularly this bunch. Economically illiterate, and socially uncaring.

Absolutely! It angers me so much! Although we are not buying you have my sympathies. EAs here are still trying to charge 100k-150k more than what properties are worth. People should always look at sold house prices including 2021 when prices peaked.

To make matters worse, to pay for the stump duty you could use your credit card (in 2016 when it was introduced our lawyer refused) but now that this money will be added on top of the house price the banks will not accept credit cards.

They could have introduced a stump duty holiday for first time buyers only.