0% Stamp duty threshold increasing to £500k

[Rebelwithallthecause]

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

The Express suggested (so highly likely it's complete bollocks) that it's just for first time buyers?

That is bollocks as there's already no stamp duty under 300k and tapered to 500k for first time buyers

@helpmeh I thought the same. I can see how it may affect those houses listed very close to the threshold, but for the vast majority of houses surely it won't matter. The person I'm buying from doesn't see the money in any case so why would this increase prices?

I may be missing something obvious.

R4 Today news just said “Sunak will announce details of a Stamp Duty holiday”.

R4 always know what’s going on. It’s happening, and they can’t delay it, surely?

So what time do we think the announcement will be? And how will we find out if there is a £500 cliff edge or not?

We are about to put our house on the market and buy a bigger house (because my teenage son doesn’t actually fit his box room anymore, so need not greed). I’d imagine it would go on for what it would have gone on for anyway but we might be more likely to sell it and sell it more quickly. This would be our benefit of stamp duty as all houses we’re looking to buy are above the cut off.

The house we’re selling has scope to extend, so hopefully buyers would put the stamp duty savings in the pot towards that, and therefore it would go back into the economy.

The announcement will be begwee. Half 12 and one

@Desiringonlychild I agree. It’s sad actually that most people don’t understand that an increase in house value doesn’t affect their quality of life unless they’re downsizing. I guess it helps play into the middle class’s Hyacinth Bucket syndrome.

@ChocoTrio Studying economics gives you the foundations to understand the various factors at play but doesn’t make you an economist by any means. A PPE is too broad to actually go into any serious detail on Economics (I have friends who’ve done PPE) and working at an investment bank as an analyst means you’ll spend time on far simpler financial models than what economists use on a daily basis. Easiest way to think about this is: Quants/analysts etc at a bank look at factors with a narrow focus (a specific industry etc) to learn about how these variables affect both company performance and market sentiment. Economists on the other hand, play in a much larger and far more complex pool of variables, each with a subtle yet definite relationship to the others, to predict wider ranging outcomes like the potential collapse of a currency etc.

Now add to this the fact that Rishi’s job is a political one and you’ll begin to understand why his policies are focused on making the wider public “feel rich” rather than actually making them rich.

I disagree if you think the stamp duty cut isn’t going to increase house prices. It is exactly why it was initiated in the first place. Rishi knows that falling house prices (which are virtually guaranteed given the impending recession) are very unpopular with the Conservative electorate and this is a fairly obvious attempt to prop it up. He’s implementing something that estate agents have been clamouring for since the lockdown began as they could all see the writing on the wall.

Any guess if the second home stamp duty will be relieved as well?

@istheresomethingwrongwithme

Jumping on this thread in anticipation of today's announcement.

We're buying at £525k. We viewed as soon as lockdown restrictions allowed and agreed to pay full guide price because we have been searching for years and this is just right for us. Solicitor thinks we can complete this month, although I think that's optimistic and it will be August.

We aren't selling and will be renting our current home out, so I don't suppose the relief will apply to second homes anyway (which is fine, that's all part of having an investment property). However if that's not the case I'll be pissed off if this isn't implemented until autumn because our vendors won't be able to wait.

The papers are pretty unanimous that it’s going to come into effect straightaway, due to the aforementioned outcry. So, you’ll benefit from it.

@newbie111 - that makes. It's a hard job to get right.

I just remember reading a few articles about Economists that looked at why they get things so wrong sometimes. It just seems like a bit of guess-work at times.

'Why economists get things wrong'

@Bells3032

The announcement will be begwee. Half 12 and one

Thank you

Also @newbie111 Regarding "I disagree if you think the stamp duty cut isn’t going to increase house prices."

As already shown on this thread, there are going to be people in the middle of exchange and Completion - with purchase price already agreed beforehand - who will benefit from this stamp duty cut. It may feel justified to them too - especially with the delay and inconveniences caused to them by lockdown and instructions from the government to not move (or builders to stop building - and therefore causing delays to finishing new homes etc.)

It's none of my vendor's business how much money I have access to. Your house isn't suddenly worth £8k more just because I happen to have saved £8k elsewhere.

The sole definition of what a house is worth is what someone is willing to pay for it. And in most cases - not every single one, but enough to affect average house prices significantly - if people aren't spending money on stamp duty they now have that money to spend elsewhere, so what they're willing to pay goes up.

Any guess if the second home stamp duty will be relieved as well?

Doubtful. Govt makes an absolute killing on this.

If the money being spent was instead focused on building houses and other required infrastructure, invested in education and research, tax breaks for SMEs etc

He has done this stuff

• cuts to rates
• large amount to education (more always good)
• talking about VAT decrease for sectors
• entrepreneurial scheme to fund fast growing start ups
• moving houses brings about increased labour
• youth scheme for jobs
• furlough a big spender to help businesses

Off the top of my head.

I’m not posting from a political standpoint but I am interested in the economics and I think he’s a good economist first.

Everyone seems to be reporting that it'll happen immediately now, which is good... On tenterhooks a bit to see if it's expected to last for 6 months or 12.

@Smallgoon there is a speculation it might apply, will see soon

I would rather pay more stamp duty and help pay off the huge country debt instead of subsidizing housebuilders profit and existing home owners house values as that is all that will now happen, people now have more money to pay for a house and will now be competing with each other pushing up house prices

Immediate effect. Woohoo!!

We are so relieved

That’s just saved us £4000 then! I’m happy with that!

Great news. But does it mean a cliff edge after £500k?

Increase in threshhold to £500k from today til 31st march

Woohooooooooo so pleased! £9,250 for us, moving from our little starter home into what we hope will be our long term family home, a big stretch for us. This will allow us to do the big jobs to the house immediately using local landscapers, carpet fitters and carpenters.

Hallelujah! 🙌