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

is this another unattributable briefing leaked to the friendly press by Cummings an anonymous source close to the government?

@PigletJohn no this was a statement in Parliament and now on the govenment website

Does anyone know, buying new home before old one sold, both under 500k, although would be main home was being classed as 2nd home until old one sells (when could apply for refund of a percentage)....I'm not quite sure how I stand re sdlt now?

Food for thought?

David Westgate, CEO at consultancy Andrews Property Group, says it’s a ‘high risk’ move that could drive prices sharply higher in the short-term.

‘’Making the much anticipated Stamp Duty cut temporary is a gamble if the economy hasn’t recovered by the Spring.

“It is possible that we will have a boom scenario between now and April next year when a disproportionate number of people are buying at higher prices followed by softer prices when the scheme ends and asking prices are adjusted.

“Arguably the real winners will be purchasers of higher value properties who have just had £15k knocked off their completion bill, not the people it was intended for.

“Cliff edge deadlines completely distort the market and rarely benefit the consumer.”

We bought before selling old one, you pay the second home rate on property buying then claim back if you sell other one in 3 years.

Thanks Koala yes I'm not sure if I will benefit from the new temporary cut. I was smiling too early

Had this been asked - so if you purchased a property at 800k you would only pay from 500-800?

Anything to flog the dead horse /boost the housing bubble when times get hard.

Yes that's correct @finallyrelief. The first 500k is 'free'.

I think it may help sell the other one if ready to sell and complete before March so on the market quite soon. That's what I'm hoping for ours anyway - we are going to be tight on 3 year rule.

No change for Scotland by the looks of it :(

So it is immediate!

Think some of you have got your sums wrong? I think the most you can save is what you would have paid previous on a 500k house, which I think is 10k?

I agree Koala it will surely help sell other one, I must get the paint brush out. Legal adviser says awaiting specifics, nearly at completion.

Sorry - I stand corrected - 15k

Love it. Will benefit everyone in our chain to stay firmly put.

@Desiringonlychild

Good food for thought. Only time will tell though.

One of the local property has already dropped from £525k to £500k! It was always overpriced (and still doesn’t interest me), but the drop was clearly in response to today’s stamp duty announcement...

@Hmmph

That's encouraging - may prove wrong the prediction that the stamp duty holiday will increase prices.

Looks like the stamp duty may just do what it was intended to do - incentivise the economy!

I already know of friends who want to move that are eagerly and seriously looking to do so now. The will tell but I suspect for a lot of people this is going to be a positive development.

*Time will tell

FT says

www.ft.com/content/f61c179d-fd47-38ba-b1ab-df158fa62dd9

UK to cut property stamp duty to boost housing market

"The stamp duty threshold for homebuyers will be raised from £125,000 to £500,000 until March 31, with effect immediately, chancellor Rishi Sunak said in his summer statement, in a move estate agents were praying for.

The duty cut will be effective immediately.

This means someone buying a £500,000 home, which is about the level of a starter home for many first-time buyers in London, will save £15,000 on their tax bill."

In the current circumstances, I actually do think it will do what it's intended to and not just increase prices.

There will be a percentage that now can purchase a property that more expensive than their budget would otherwise stretch to. But imagine that for most people (especially those who are already looking / have offers in /et) it will just mean they suddenly have an extra £15k to spend on house updates, buying new furniture, or just spending in general.

Does this apply to a second home under 500k?

From checking gov.uk which has updated its calculations, I think if you are buying under 500k before selling, so classed as 2nd home, then its pay only the 3 percent and apply to claim it back when sold within the 3 years. So zero per cent overall, hopefully.

Is there a calculator online with the new figures included?