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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:
tallrachel · 07/07/2020 11:43

How on earth has this got anything to do with Brexit? The housing bubble has been teetering on the brink for a while now. They are shit scared the fallout from Coronavirus will push it over the edge and will stop and nothing to keep the bubble expanding.

moolaalaa · 07/07/2020 11:45

"I really hope this is true as we are hoping to upsize in the next few months and it would save us thousands! "

It just wont though, sellers will just market their houses for a bit more because they know buyers will not have to pay the stamp duty.

SSJ2017 · 07/07/2020 12:17

Sorry if this is a dim question, but we were looking to put our flat on the market and it’s been valued by 3 different agents between £525k and £540k. We were going to go with £525k as we were hoping for a quick sale. Does this proposed change mean it will likely be more difficult to sell at that price, as buyers will want to get under the £500k mark?

Bells3032 · 07/07/2020 12:19

We don't know yet tbh. It depends whether they cliff edge it (ie once you hit 500k you pay full stamp duty) or threshhold it (Ie no one pays any stamp duty for the first 500k) and whether they set it at 300 or 500k. no one knows atm

labyrinthloafer · 07/07/2020 12:23

@tallrachel

How on earth has this got anything to do with Brexit? The housing bubble has been teetering on the brink for a while now. They are shit scared the fallout from Coronavirus will push it over the edge and will stop and nothing to keep the bubble expanding.
There a need to ensure the stats look ok across the period where we actually move from having a deal to having no deal.

If it was about the virus, they'd do it tomorrow imo.

It will look better for those responsible for no deal if house sales don't drop even further once no deal is confirmed.

Every lever will be pulled to mask the economic stupidity of allowing/choosing no deal in the middle of a pandemic.

labyrinthloafer · 07/07/2020 12:26

So depressing them right now, to have a mini boost later in the year, is more evidence that the economy was damaged by the pandemic, not Brexit.

They want to show this: -- not this _. Because of Brexit I do not believe they can hope for this __-.

labyrinthloafer · 07/07/2020 12:30

Oh that was a massive formatting fail Blush

I was trying to quickly say we are at the start of a recession. The most stupid thing we can do is make it worse. No deal is happening, by choice. No deal will make it worse. By pushing financial around so it happens across the actual no deal months, they can pretend it wasn't that bad.

SSJ2017 · 07/07/2020 12:58

Thanks @Bells3032
You’re right, I’ll just have to wait and see (and prepare myself in case it’s cliff edge!! 😱)

GreyGardens88 · 07/07/2020 13:00

Doesn't mean anything to me as I'm a FTB looking at houses under £200k

Talia99 · 07/07/2020 13:39

I was thinking of moving next year or the year after and now I’m not sure what to do.

It would save me around £5,000 if stamp duty is suspended and I assume make my flat more saleable since I’m looking to sell at around £260,000 and buy at around £300,000 but there are good reasons not to move now (not including the fact I’m not keen on house hunting or moving in the middle of a major pandemic).

In addition, if prices are down now but rebound later, if I have to sell for £10,000 less this year than I would have got next year, the £5,000 looks like less of a saving.

ChocoTrio · 07/07/2020 13:45

@Rebelwithallthecause

It's unclear - some reports saying it starts in October and others saying it'll start tomorrow. Which one is it? We shall soon find out.

@tallrachel and @labyrinthloafer

Regarding this being about Brexit rather than the pandemic - I think that unless there's a vaccine soon the pandemic isn't really going away just yet. So, I suspect it's a strategy to manage a bit of both pandemic and Brexit.

If it really is just about Brexit alone then it may need more than 6 months - maybe years or decades, especially if it's a No Deal. Let's face it - they can always add a few more months to extend it at the end if it really is about Brexit.

It makes more sense to start it off tomorrow, or at least, sooner rather than later. To stall it until October has its own issues.

GrumpySausage · 07/07/2020 14:32

A lot the papers today seem to be suggesting it will be implemented from tomorrow, as Sunak has been put under pressure to do so or see a stall in the market. I have to admit, it did seem a bit obvious that would happen if he delayed it until later in the year.

I'm really hoping it comes into force ASAP as we are due to exchange and complete in the coming weeks and this would save us 6k.

Will be listening carefully tomorrow.

Original poster
Rebelwithallthecause · 07/07/2020 14:33

Fingers crossed for you @GrumpySausage

OP posts:
Hmmph · 07/07/2020 15:00

@SSJ2017

Sorry if this is a dim question, but we were looking to put our flat on the market and it’s been valued by 3 different agents between £525k and £540k. We were going to go with £525k as we were hoping for a quick sale. Does this proposed change mean it will likely be more difficult to sell at that price, as buyers will want to get under the £500k mark?
We’re looking at buying around that mark.

If it’s a £500k cliff edge (so current rates apply for houses over the threshold), I’d be looking at paying £499,950 or something for your house. Possibly with some extra to buy your chattels... Houses just over the threshold cost £15k more!
A house for £525k would cost £541,250.

If it’s a gradual after £500, I’d be more inclined to pay more as stamp duty would be much much less.
If it’s 5% over £500k, a house for £525k would cost £526,250.

There’s £15,000 difference between the scenarios!

Anyone who thinks those buying and selling around £500k are being greedy... this is what normal sized or small houses or even flats cost in some areas :(

labyrinthloafer · 07/07/2020 15:24

I suspect also they are desperate to stave of house price falls.

The 0% for FTB apparently the saving on SD just went into extra house price?

I don't know why I am moaning, we are thinking of moving if possible! I just hate gimmicks like this, and can think of better uses.

Theforest · 07/07/2020 15:28

I do wonder if its 6 months only - house moves can take longer than 6 months. Imagine thinking you wont have to pay stamp duty and then any delays means you could still end up the the bill at the end.

GreyGardens88 · 07/07/2020 15:32

Why bother trying to stave off a house price fall? House prices are due a crash, prices can't keep rising ad infinitum

Original poster
Rebelwithallthecause · 07/07/2020 15:37

Except for if there’s still a never ending housing shortage

OP posts:
Desiringonlychild · 07/07/2020 15:43

@GreyGardens88 so much of people's net worth is tied up in housing.

This government would do anything to keep house prices up. Remember they opened up estate agents first before any other business. Its not good for the country to have an inflated property market but sadly a lot of people have a vested interest - property investors, housebuilders, estate agents etc.

labyrinthloafer · 07/07/2020 15:52

House price drops are very unpopular

SSJ2017 · 07/07/2020 16:07

@Hmmph

Yep, if it’s a cliff edge situation, no one is going to want to spend another £15k for those sales hovering above the 500k mark.

I hear you. London house/flat prices are insane Sad

ChocoTrio · 07/07/2020 19:36

@GreyGardens88 "Doesn't mean anything to me as I'm a FTB looking at houses under £200k"

That's nice for you.

However, it may mean something to you indirectly. If there is a Stamp Duty holiday it may make more people inclined to sell their properties and move - some of those properties may be under your £200k price limit. So, it may mean more choice on the market for you.

ChocoTrio · 07/07/2020 19:37

@Desiringonlychild

"so much of people's net worth is tied up in housing."

That's is so true.

HappyDinosaur · 07/07/2020 20:43

Isn't the FTB stamp duty relief limit 300k not 200k?

ChocoTrio · 07/07/2020 20:51

@HappyDinosaur - looks like it is £300k for FTB. But I thought @GreyGardens88 was saying her budget was under £200k.

Maybe there was a miscommunication there?

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