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Original poster

0% Stamp duty threshold increasing to £500k

261 replies

Rebelwithallthecause · 06/07/2020 08:31

Just seen the news that the chancellor is due to announce temporary change to stamp duty to help things along which will mean houses under £500k will pay now tamp duty

Not too sure how long this will run for but maybe a few years

Will this change your mind on if you stay out or sell?

We had been looking to love but started considering staying and extending but this would mean a big saving and might mean that more buyers would be interested in ours too

OP posts:
mnahmnah · 06/07/2020 08:34

Amazing! That will be a huge help for us. We’re desperate to move

HelpMeh · 06/07/2020 08:37

It's really fucked me off to be honest. From what I'm reading it won't come into effect until the autumn. I've been in the process of buying since mid February. We stuck by the price we had offered when the market reopened and now this? I think it's pretty mean spirited if they delay implementation. I'm starting to resent the house.

BronwenFrideswide · 06/07/2020 08:39

Hope that's right and he does it now!

Simonsaysitschristmas · 06/07/2020 08:51

I hope he doesn’t wait until autumn. If he does the market is just going to stall until then which will be very frustrating.

HappyDinosaur · 06/07/2020 08:58

If they do do this they need to do so with immediate effect otherwise surely lots of currently ongoing sales will fall through?

Feelinghistoric · 06/07/2020 09:12

I don’t understand this at all. Surely this will just delay every single house purchase currently moving through until fucking November? Is there ANYTHING this government can’t fuck up.

Wasail · 06/07/2020 09:19

Hmm I’m in the process of buying and selling a house. Is this going to mean my buyers delay until it comes into effect? I can see this process dragging out even longer than it already has. Plus my mortgage lender is now being awkward about my mortgage even though I don’t want more money or a longer term. I’m self employed but, thankfully, not overly effected by th pandemic.

OverTheRainbow88 · 06/07/2020 09:23

Seems unfair in those who exchanged beginning of the year!!

pinkpepperclove · 06/07/2020 09:27

I totally understand where all the sellers are coming from here... if it's any consolation...

We are chain free looking for our forever home and will continue to do so.. We are looking at saving around £15k ish... but if the right home comes up.. then I wouldn't hold out on buying.

I understand everyone isn't in the same position and would like to make a saving however It won't stop us!

HelpMeh · 06/07/2020 09:27

Well, I can't speak for others but it will make me heavily consider delaying my purchase. My stamp duty is £8k Angry. I wish they'd stop leaking crumbs to the media. Just make a fucking announcement. It makes no sense to delay roll out, they'll suppress the market.

TowelHoarder · 06/07/2020 09:34

Aww crap, my house went on the market today and it looks like this won’t come in until November, so either everyone will stall or they’ll offer £5,000 less than they would’ve to make up for the stamp duty.

They shouldn’t announce these things, they should just bring them in overnight.

HappyDinosaur · 06/07/2020 09:36

Although I suppose if you do delay you risk that house prices won't be as negotiable as sellers will know the buyers aren't paying stamp duty? FTBs already get stamp duty discount don't they? Removal firms etc could be in trouble if lots of people delay moving, after several months of lockdown then this. Hopefully they will work out how to introduce it sensibly if they do.

Ypsilanti · 06/07/2020 10:09

@HelpMeh

It's really fucked me off to be honest. From what I'm reading it won't come into effect until the autumn. I've been in the process of buying since mid February. We stuck by the price we had offered when the market reopened and now this? I think it's pretty mean spirited if they delay implementation. I'm starting to resent the house.
Snap. I exchanged last week after having my offer accepted in early February. I also stuck by my original offer. I’m rather unkindly hoping it’s capped at £300k (I’m buying at £400k).
sparklewater · 06/07/2020 10:14

We're currently on the market, looking to buy houses ranging between 450 and 550, depending on what work needs doing to them, etc. This would completely change everything for us in terms of our absolute maximum spend, etc. We will just come off the market and wait until autumn if it's definitely going to happen.

TowelHoarder · 06/07/2020 10:17

I’ve just written to my MP and Rishi to ask them to either do it now or not at all.

HelpMeh · 06/07/2020 10:17

@Ypsilanti we haven't exchanged yet, but really just want to get a move on. It feels a bit unfair that due to various circumstances our vendor is likely to benefit from a drop in prices AND a stamp duty holiday, while I benefit from neither. I'm feeling very bitter today 🍋 We're buying at £450k Sad

Ypsilanti · 06/07/2020 10:23

@HelpMeh I think the Treasury will have to backdate it to the announcement or it’ll freeze the market for months. So you might be ok if it includes transactions with an exchange date after the announcement (assuming Sunak gets a move on and makes a proper announcement). I hate this government’s drip-feeding of policies (I hate everything about this government, to be fair).

BrokenBrit · 06/07/2020 10:23

Where are people getting the November date from please? I’ve read a couple of articles but not seen that.

HelpMeh · 06/07/2020 10:25

@BrokenBrit The Times said it is expected to be introduced in the autumn budget update.

Dougt · 06/07/2020 10:28

We have been waiting to exchange for weeks. Was due to happen on Friday but someone had messed something up so it was too late. And now this! So our buyer has said they don’t want to exchange today and wait for announcement. I guess she will then want a discount or we’ll be stuck.

We have been packing as we all agreed a move date and kids desperate for house with garden and need more room!! Aaargh!!!

Dougt · 06/07/2020 10:34

Is is likely they will back date it to the date of the announcement?

HelpMeh · 06/07/2020 10:34

@Ypsilanti honestly, I think it should extend to all who were impacted by lockdown to be honest, as these are the people who have suffered extra expense and inconvenience. I thought I'd be in the house by May at the latest. We are first time buyers purchasing from someone chain-free - it was never meant to be this painful.

I'm also infuriated by this "wind them up, watch them go" drip-feeding that has become the "new normal" before any important announcement.

BrokenBrit · 06/07/2020 10:35

Thanks @helpmeh.
Nightmare.

Mildura · 06/07/2020 10:40

I'm also infuriated by this "wind them up, watch them go" drip-feeding that has become the "new normal" before any important announcement.

Either announce now that you are changing stamp duty or confirm that it will not change.

The worst thing to do is give the impression you might be changing it. All that does is completely paralyse the market.

Hmmph · 06/07/2020 10:42

Anyone have a guess at what will happen to stamp duty on houses above £500k? Will there be a huge cliff edge or would stamp duty be reduced in increments for houses about that price?

Would a house sold for £499,999 be 0% stamp duty and one for £500,000 be the ‘old’ bands (so £15,000), or would it be it be 5% for just amount over £500,000? Or would the bands be effectively changed, so 2.5% over £500,000 and 5% over an amount higher than this?