To think that the stamp duty holiday extension was actually a rubbish idea?

[SunflowerOwl]

Everything seems so frantic and hot with the property market at the moment with everyone dying to save a few thousand pounds even though the house prices (almost 10% up in some areas!) have gone up so much that the net saving is basically nothing! First time buyers and lower income people are getting nowhere.

I've got friends who are trying to move and the process is making them miserable- constantly being outbid by offers way over asking price that they cant match, and people I know in conveyancing are stressed beyond belief trying to get everyone's sales through before the new deadline.

AIBU to think it was a silly idea and it would have been better just to allow extensions for people who were already close to exchange rather than throw the gates open to all for another 3 months?

I think the stamp duty holiday is only part of the story. Historically low interest rates as well as peoples needs changing (ie work from home and need more space or can move areas) are also huge factors.

It was a rubbish idea from the start. The property market was never stagnant. We were in the middle of buying in the first lockdown and things were still very busy with solicitors and EA. Since end of the first lockdown, it's gone mental and is actually getting worse as time goes on. Our purchase fell through as vendors pulled out just before exchange (after 5 months of us trying to push ahead) as they decided they didn't want to sell. It's been impossible for us to buy since. Everything is selling for 100K ish over guide price. I called about a house a couple of weeks ago. The listing went up about 11am. By close of day, they had 30 viewings booked and 4 offers over guide price sight unseen and were no longer registering any interest. Unless one of you don't work and can make house hunting a full time job, it's impossible to even get in the door. I can't count the number of houses that have had offers accepted on the first day of viewings before we could even get in (or even before any viewings were held). It's utter madness.

YADNBU

The stamp duty holiday full stop was 100% a stupid and very ill thought out idea.

The country definitely wouldn't be in safe hands under Rishi Sunak, if he became PM.

I'd say the stamp duty holiday was hare brained but it's an insult to hares.

It's only served to further inflate the unsustainable bubble - pushed the house prices up further out of reach for many FTB. It's hardly good for many already on the ladder either. People are stuck in unsuitable starter homes they've outgrown because they can't afford to upsize.

It's massively contributed to the growing pressures on housing availability across the country.

And, it's also hugely added to the housing crisis...because of the increased housing prices, which keep FTB in private rentals - which in turn pushes vulnerable low income families and disabled individuals out of housing altogether.

London in particular is in a homelessness emergency. 165,000 homeless there. That's more people than the size of many UK towns. It's a growing problem elsewhere too.

Eventually there could be civil unrest. Desperate people lacking one of life's most basic essentials - a settled home - might do desperate things.

It costs us, the taxpayer, massively. Funding homeless accommodation is very expensive. There's also the knock on effects of housing insecurity and homelessness. Financial demands on the criminal justice system, social services, mental health services, the NHS. A public health issue too - since overcrowded slum housing increases the risk of Covid spread (and therefore a wider outbreak).

It costs on an individual level and also a societal one.

Stable homes = stable society.

The stamp duty holiday lost us - the taxpayer - millions and millions. Money we could've used to help house the homeless.

@gigi556

I think the stamp duty holiday is only part of the story. Historically low interest rates as well as peoples needs changing (ie work from home and need more space or can move areas) are also huge factors.

And taxpayer funded schemes like Help To Buy - which use taxpayer money for developers to knock up shoddily constructed and overpriced new builds.

There's a serious imbalance in the housing market - causing very serious problems.

@SunflowerOwl

Everything seems so frantic and hot with the property market at the moment with everyone dying to save a few thousand pounds even though the house prices (almost 10% up in some areas!) have gone up so much that the net saving is basically nothing! First time buyers and lower income people are getting nowhere.

I've got friends who are trying to move and the process is making them miserable- constantly being outbid by offers way over asking price that they cant match, and people I know in conveyancing are stressed beyond belief trying to get everyone's sales through before the new deadline.

AIBU to think it was a silly idea and it would have been better just to allow extensions for people who were already close to exchange rather than throw the gates open to all for another 3 months?

It really benefited people at the very beginning. I bought my house last year when Lockdown had driven down house prices. I sold and bought my properties for approx 15k less than I needed but it evened out with the SD saving.

It also encouraged panic buying.

Always ill advised but particularly the case when doing what many people are doing. Making the major life decision to move away from their current area to somewhere completely different - often (because of Covid) without even properly visiting or researching first. I suspect whilst some will be happy, we'll also see many who've acted in haste and will later regret their choices.

We saved the maximum amount allowed in March so definitely not a “stupid” idea to us as it meant the pressure was off a little as we drew closer to the first cut off.

Definitely a stupid idea for society though.

We - UK taxpayers - really didn't need to lose millions in other to inflate the house price bubble.

I think it should have been a grace period. Not bring new sales into it.

I can only imagine Rishi thought stimulate the housing market and get a lot of stamp duty into the coffers) albeit less money per transaction or maybe not), no different from a sales promotion.

Market seems to be cooling now. Sales falling through and not going under offer as quickly.

Market seems to be cooling now. Sales falling through and not going under offer as quickly.

Not where I am

Eventually there could be civil unrest. Desperate people lacking one of life's most basic essentials - a settled home - might do desperate things.

gosh some people like drama don't they.

Yes it was bonkers. Prices have shot up so some ftbs I know are now priced out. Great help.

@rachelstriffle

Eventually there could be civil unrest. Desperate people lacking one of life's most basic essentials - a settled home - might do desperate things.

gosh some people like drama don't they.

I doubt anyone' 'likes' being in a desperate situation. Of course it's not 'drama'. Crime rises when deprivation does. It's happened throughout history and happens now.

Boris and co. seem to want to follow the Brazil model. Two extremes. The 'haves' live/hide in gated communities guarded by private security. They face high risk of serious violent crime outside - carjacking etc. They live well... sort of. If you like being in a gilded cage prison.

Or America even. Wealthy residents in California are complaining about human waste outside their houses, the public health risks, and rising crime. Well the tens of thousands of residents of the tent cities have to go somewhere...

Its also having a knock on effect to the rental market. I've spoke to many letting agents over the past few weeks and several have mentioned everything is getting snapped up by buyers moving into renting to keep a sale moving.

@rachelstriffle

Eventually there could be civil unrest. Desperate people lacking one of life's most basic essentials - a settled home - might do desperate things.

gosh some people like drama don't they.

165,000 homeless in London alone.

That isn't liking 'drama'.

That is a shocking fact.

It is a homelessness emergency.

@LavendulaAngustifolia

Its also having a knock on effect to the rental market. I've spoke to many letting agents over the past few weeks and several have mentioned everything is getting snapped up by buyers moving into renting to keep a sale moving.

Yes this.

So FTB, priced out of buying, now have extra competition for rentals too.

And in turn, more FTB in rentals pushes vulnerable low income and disabled onto the streets and into expensive taxpayer funded homeless accommodation.

Yanbu

If he wanted to get property moving he would have done better to work out how to solve the cladding issue so people in flats weren't trapped in properties that may never sell

165,000 homeless in London alone

interestingly enough, how many of these people in temporary accommodation are refusing to relocate?

(and no one is saying it is "easy", but as someone who has done it, don't come and tell me it's not possible).

@rachelstriffle

165,000 homeless in London alone

interestingly enough, how many of these people in temporary accommodation are refusing to relocate?

(and no one is saying it is "easy", but as someone who has done it, don't come and tell me it's not possible).

Well quite a lot of them do. They're forcibly relocated by their local authorities. Far away from family, friends, their communities, children's schools, and valuable support networks. Remember many are vulnerable including disabled. Support networks are so important.

But - there's also the issue of where do they all go?

This week alone has seen two threads on MN with hospitable friendly 'locals' (who make the league of gentlemen seem like the most welcoming people ever) bitterly complaining about 'incomers'.

Distressing enough the circumstances of being homeless - redundancy, illness, disability, domestic abuse, husband ran off with the ow and not paying for his children etc. To then socially cleanse them somewhere full of insular resentful 'locals' would only add to their trauma.

Did it build one more house? I doubt it.

YANBU

It’s reduced tax income for U.K. when borrowing is high due to pandemic.

It’s created a housing market bubble- which will have to shrink at some point.

It’s added more homeless/made housing crisis worse as a pp eloquently stated

It’s deepened inequality as it only benefits those who can already afford to buy a home, those unaffected by the economic crisis that is affecting many people left struggling with no job, failed business on benefits due to pandemic.

It is all part of the campaign to have Rishi as the next Prime Minister.

As to whether or not it is a good idea for the housing market or the people of this country that is irrelevant as long as the rich can keep enriching themselves at everyone elses expense.

I think it did what they intended it to do.

@rachelstriffle

165,000 homeless in London alone

interestingly enough, how many of these people in temporary accommodation are refusing to relocate?

(and no one is saying it is "easy", but as someone who has done it, don't come and tell me it's not possible).

What happens when our low paid service workers Are forced to relocate out of London? And can’t afford to commute in? Where do our hospital porters, our refuge collectors, our school caretakers, our nursery workers live? Can’t send them all to live in Margate can we? We need to have affordable housing for all or else who does the low paid jobs?

A typically self centred Tory policy designed primarily to help those already able to help themselves.

Inflating the housing market and encouraging landlords to sell does nothing to help renters, who are most at risk of being made homeless.

I wish all those complaining about the impact of second homes (understandably) would stop and think for a minute and stop voting Tory.