snowychap Posted September 2, 2008 Share Posted September 2, 2008 Stamp duty is axed below £175,000 Well, not axed really, is it? Axed for a year. Yep, a temporary increase in the floor from £125k to £175k. Stamp duty is to be axed for a year on properties costing less than £175,000 as part of a package of measures being unveiled to help the housing market. The level at which the 1% purchase tax has to be paid is to be increased from £125,000, from Wednesday morning. The move - which applies to residential property - would save someone buying a £175,000 property £1,750. Other measures aimed at boosting the market include "free" loans of up to 30% for first time buyers in England. Households earning less than £60,000 will be offered loans free of charge for five years on new properties, co-funded by the state and developers. The stamp duty move was welcomed by Britain's biggest mortgage lender, Halifax. A spokeswoman said: "This is a sensible measure and it will help the housing market." House prices are reportedly falling at their fastest rate since the early 1990s, while rising fuel costs and the global credit crunch are denting economic confidence. Communities Secretary Hazel Blears will announce a raft of proposals on Tuesday aimed at buoying the property market. She is one of several cabinet ministers putting forward plans seen as the beginning of Mr Brown's "recovery plan". The loans system, called HomeBuy Direct, is to be run together with "large-scale" property firms. Once the five-year "free" period is up, homebuyers will be asked to pay a fee, the Department for Communities and Local Government said - although no more detail of this was provided. A spokesman added that "hundreds of millions of pounds" had been put aside in the last Budget for such a move. In a statement, the DCLG said: "Not only will this [HomeBuy Direct] help first-time buyers, but it will also support the industry by identifying buyers for their new homes. "This will help the housebuilding industry weather difficult conditions, so that, when the market recovers, they are ready to expand and get back on with building the new homes the country needs for the long term." 'More homes sooner' For existing homeowners who can no longer afford mortgage payments, the government says councils or social housing landlords can pay off the debt and instead charge tenants rent "at a level they can afford". The DCLG is also promising to "bring forward funding for social housing from existing budgets, delivering more social homes sooner". The prime minister has faced a difficult few months, with Labour losing two parliamentary seats in by-elections, the London mayoralty and many councillors in May's local elections. 'Resilient' On Monday, he said the UK faced "unique circumstances", including oil prices trebling and the global credit crunch. But Mr Brown said the government was "resilient in... dealing with these problems". He earlier denied a rift with Chancellor Alistair Darling, who had said the country was facing its worst economic crisis in 60 years. For the Conservatives, shadow chancellor George Osborne said: "We will look at the details of these measures and we will support those that will work. "But let's be clear, they are not going to help the vast majority of families facing a rising cost of living and falling house prices. "Nor do they amount to the first instalment of the economic recovery plan we were promised. "I suspect that what we will see in the coming weeks is a desperate and short-term survival plan for the prime minister rather that the long-term economic plan the country needs." Liberal Democrat leader Nick Clegg said: "This looks like a hotchpotch of measures thrown together to save Gordon Brown's political skin. "The social housing stock could be increased far more easily by allowing local authorities to buy up unsold properties and use them for new social housing. "Yet again the government is desperately scrabbling around for a way to fix problems of its own making." On first glance (and without, admittedly, reading much past the first couple of lines of the article) does this not suggest that for any properties hovering just above the 175k mark that people will be knocking off £x pounds in order to take it under the threshold? What is the average price of a house in the UK? about £219k. So I don't expect a stamp duty holiday on properties under 175k to have much effect. Link to comment Share on other sites More sharing options...
Gringo Posted September 2, 2008 Author Share Posted September 2, 2008 Average house prices are around £170k according to Natiowide - so this does save a large group of people a bit dosh in what is an expensive transaction. But if you can't afford a 20% deposit it doesn't help that much. What does is the 30% free loan - it now becomes cheaper for a lot of tenants to buy instead of rent - well it does for the first five years. Wonder how you prove you're a first time buyer? Link to comment Share on other sites More sharing options...
snowychap Posted September 2, 2008 Share Posted September 2, 2008 Average house prices are around £170k according to Natiowide - so this does save a large group of people a bit dosh in what is an expensive transaction. But if you can't afford a 20% deposit it doesn't help that much. What does is the 30% free loan - it now becomes cheaper for a lot of tenants to buy instead of rent - well it does for the first five years. Wonder how you prove you're a first time buyer? The 170k is the Nationwide figure whereas the Land registry figure is 219k (from this). What is the difference in the methodology of the two systems? Also, from that report A spokesman added that "hundreds of millions of pounds" had been put aside in the last Budget for such a move. Where exactly have these hundreds of millions been squirreled away? The government was having to borrow in order to fund the C&N tax cut as they didn't have any room to manoeuvre then. And does bringing forward funding (for social housing from future budgets) not mean borrowing more in the short term, too? What happens if this doesn't put the brakes on the decline/fall/crash? Link to comment Share on other sites More sharing options...
ianrobo1 Posted September 2, 2008 Share Posted September 2, 2008 another ay to boost a market whch is bound to fail until one party has the guts to actually say a price crash may be a good thing this will continue, why try and boost a arket which was ridolcously over priced Link to comment Share on other sites More sharing options...
snowychap Posted September 2, 2008 Share Posted September 2, 2008 In order to try and remain in power? Link to comment Share on other sites More sharing options...
ianrobo1 Posted September 2, 2008 Share Posted September 2, 2008 no to change the situation, on the surface the plans are very good for first time buyers who seeing lower prices may well come in buts as I said a page or so back why not boost public rented, why is it perceived as so good to own you own house when many other western countries do not have that attitude and are better off for it Link to comment Share on other sites More sharing options...
snowychap Posted September 2, 2008 Share Posted September 2, 2008 no to change the situation, on the surface the plans are very good for first time buyers who seeing lower prices may well come in I'm not sure they are great and how will this change the situation if, as you claim, the market is bound to fail? And how is all of this going to be funded because I'm not sure these proposals have actually been fleshed out much, have they (especially the 'free loans' bit)? Link to comment Share on other sites More sharing options...
ianrobo1 Posted September 2, 2008 Share Posted September 2, 2008 ell as prices fall then houses become affordable for first time buyers if these plans encourage them in the it could work the wider question on a poltical and economic front is whether you prop up a failing market, surelyfor first time buyers the lower the price the better it is I should know I brought at the lowest point of the last house price falls Link to comment Share on other sites More sharing options...
snowychap Posted September 2, 2008 Share Posted September 2, 2008 ell as prices fall then houses become affordable for first time buyers if these plans encourage them in the it could work Not sure I have a clue what you are trying to say here? the wider question on a poltical and economic front is whether you prop up a failing market, surelyfor first time buyers the lower the price the better it is Perhaps. Can you also tell me why these 'free' loans are for first time buyers of new homes only? Is this actually to try and prop up builders and developers? Might it have been a good idea for the government to have actually produced details of the policies they espouse before they announce them to the world? What is this 'fee'? What happens if people can't pay this fee? Is the housing minister in 5 years time expected to be calling in the bailiffs on x thousand householders? I'm afraid the more I look into this start of a great policy 'fightback' the more it appears to have been put together by a few people chinwagging over a few holiday beers. Link to comment Share on other sites More sharing options...
ianrobo1 Posted September 2, 2008 Share Posted September 2, 2008 on your query Snowy, I thought it ould be simple if we see a 20% drop then houses worth £120k become woth 96k that makes them affordable at every bottom as I said with my example you get to a level where it starts agan makes the laugh the Tories suggest this back in the 90's don;t remember them helping much Link to comment Share on other sites More sharing options...
snowychap Posted September 2, 2008 Share Posted September 2, 2008 I understand what a reduction in house prices means and I can calculate 20% of something, thanks. that makes them affordable at every bottom as I said with my example you get to a level where it starts agan makes the laugh the Tories suggest this back in the 90's don;t remember them helping much ???? What are you on about, here? What did the Tories suggest in the 90s? And did the Tories not help or the policies they suggested not help? Ian, you've got to make yourself clear if you want people actually to have a conversation. on your query Snowy I did make several queries, actually. :winkold: Link to comment Share on other sites More sharing options...
ianrobo1 Posted September 2, 2008 Share Posted September 2, 2008 I think it is clear what is difficult in understanding when the housing market gets to a certain bottom point the buyers start to flood in happened every time and every time the house prices have stormed bak Link to comment Share on other sites More sharing options...
Risso Posted September 2, 2008 Share Posted September 2, 2008 I think it is clear what is difficult in understanding when the housing market gets to a certain bottom point the buyers start to flood in happened every time and every time the house prices have stormed bak Yep, just biding my time....! Link to comment Share on other sites More sharing options...
snowychap Posted September 2, 2008 Share Posted September 2, 2008 So what is the point of today's proposals, then? Is it just to give the housing market a false 'bottom' so that prices start rebounding from now? Again, I thought all this boom and bust crap à la the Tories was supposed to have gone out of the window with your lot? Link to comment Share on other sites More sharing options...
ianrobo1 Posted September 2, 2008 Share Posted September 2, 2008 if I had the spare cash in about 12 months tehre will be some bargains out there that is for sure and it all starts again Link to comment Share on other sites More sharing options...
snowychap Posted September 2, 2008 Share Posted September 2, 2008 if I had the spare cash in about 12 months tehre will be some bargains out there that is for sure and it all starts again So, you post time and again about the obsession with home ownership and the problems with that as an economic model and yet all the time you are hoping to have enough spare cash to make a killing when the market bottoms out? I now understand the basis of New Labour. Link to comment Share on other sites More sharing options...
ianrobo1 Posted September 2, 2008 Share Posted September 2, 2008 oh dear snowy, I was using it for representiative purposes other people ill take advantage it is only time ... Link to comment Share on other sites More sharing options...
snowychap Posted September 2, 2008 Share Posted September 2, 2008 In which case, why did you say the following? if I had the spare cash... Link to comment Share on other sites More sharing options...
ianrobo1 Posted September 2, 2008 Share Posted September 2, 2008 well the IF is a massive one as I am not an accountant think most understand it Link to comment Share on other sites More sharing options...
snowychap Posted September 2, 2008 Share Posted September 2, 2008 well the IF is a massive one as I am not an accountant What has one's profession to do with anything? think most understand it I'm not so sure. Link to comment Share on other sites More sharing options...
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