Another cut in Stamp Duty - what a joke

[Tara]

So house prices are up 15% in the last year, and so Truss thinks that the best thing to do with our taxpayer money is to artificially inflate UK house prices by a bit more, as they were obviously not inflated sufficiently when Sunak cut the stamp duty a couple of years ago when house prices were then artificially inflated by another 20%.

What a joke. Is there nothing that these politicians will not do to keep UK house prices at 10x or 12x average earnings, when all this does is disadvantage many of our young people who have no chance to ever afford a house.

Would not be surprised to see her try to pass legislation soon to make any falls in UK house prices illegal. Anything to keep the UK house price Ponzi scheme going.


https://www.independent.co.uk/news/uk/p ... 71669.html

[88V8]

So house prices are up 15% in the last year, and so Truss thinks that the best thing to do with our taxpayer money is to artificially inflate UK house prices by a bit more...

Have to agree. Rather silly and unnecessary idea.

Mind you, govts are also terrified of falling prices, given how many people have borrowed an excessive LTV. Remember negative equity?

V8

[Gan020]

It's crazy.

Somehow they need to engineer a soft loading for crazy high house prices but instead they want to push them even higher so eventually when the crash comes it will be even worse.

All paid for by government borrowing which will have to be paid for.

There are a million problems UK taxpayer borrowing could be used for. This is not one of them

[pje16]

There are a million problems UK taxpayer borrowing could be used for. This is not one of them

A million ????

[Lootman]

So house prices are up 15% in the last year, and so Truss thinks that the best thing to do with our taxpayer money is to artificially inflate UK house prices by a bit more, as they were obviously not inflated sufficiently when Sunak cut the stamp duty a couple of years ago when house prices were then artificially inflated by another 20%.

On the other hand stamp duty is ridiculously high for a property purchase. The base rate goes up to 12%, with an extra 3% for second properties and 2% for foreign buyers. So stamp duty can be as high as 17%, or 1/6th of the property value. It's extortion.

The solution to that is a permanent reduction in the rates, and not temporary tinkering.

[Gerry557]

Maybe you don't have to move every 18 months with work but it soon adds up. The cost of moving house is expensive anyway.

Maybe you want to downsize but once you have worked out the costs you might as well stay.

I'm not against it..... Yet.

[DrFfybes]

So house prices are up 15% in the last year, and so Truss thinks that the best thing to do with our taxpayer money is to artificially inflate UK house prices by a bit more, as they were obviously not inflated sufficiently when Sunak cut the stamp duty a couple of years ago when house prices were then artificially inflated by another 20%.

On the other hand stamp duty is ridiculously high for a property purchase. The base rate goes up to 12%, with an extra 3% for second properties and 2% for foreign buyers. So stamp duty can be as high as 17%, or 1/6th of the property value. It's extortion.

The solution to that is a permanent reduction in the rates, and not temporary tinkering.

Alternatively make it 25% on a 2nd home, 50% on a 3rd, 75% on a 4th and 100% on any above that level, plus 100% for all purchases by non-doms and companies. None offsettable against CGT. Then abolish business rates for holiday rentals and charge 5x council tax, and then perhaps locals in rural areas with generally low salaries might begin to stand some chance of getting back on to the property ladder.

[MrFoolish]

A reduction in stamp duty would be fine so long as they offset it with a Land Valuation Tax. An LVT would encourage the efficient use of land. But as it would hit the very rich it won't happen - so move along please.

[88V8]

Alternatively make it 25% on a 2nd home, 50% on a 3rd, 75% on a 4th and 100% on any above that level, plus 100% for all purchases by non-doms and companies. None offsettable against CGT. Then abolish business rates for holiday rentals and charge 5x council tax, and then perhaps locals in rural areas with generally low salaries might begin to stand some chance of getting back on to the property ladder.

As someone who enjoys holiday cottages, I feel hypocritical for reccing that, but I do agree.
Some places are just hollowed out by second homes.

V8

[Mike88]

Good news for DIY stores.

[Dod101]

Maybe you don't have to move every 18 months with work but it soon adds up. The cost of moving house is expensive anyway.

Maybe you want to downsize but once you have worked out the costs you might as well stay.

I'm not against it..... Yet.

Well if you do have to move every 18 months for work, I would not be buying unless my employer was helping with these costs.

Dod

[Mike4]

So house prices are up 15% in the last year, and so Truss thinks that the best thing to do with our taxpayer money is to artificially inflate UK house prices by a bit more, as they were obviously not inflated sufficiently when Sunak cut the stamp duty a couple of years ago when house prices were then artificially inflated by another 20%.

What a joke. Is there nothing that these politicians will not do to keep UK house prices at 10x or 12x average earnings, when all this does is disadvantage many of our young people who have no chance to ever afford a house.

Would not be surprised to see her try to pass legislation soon to make any falls in UK house prices illegal. Anything to keep the UK house price Ponzi scheme going.


https://www.independent.co.uk/news/uk/p ... 71669.html

Why not just suck it up and accept the reality that the government is going to keep the Ponzi scheme going indefinitely, buy yourself a house and stop whingeing about it on here?

[Tara]

So house prices are up 15% in the last year, and so Truss thinks that the best thing to do with our taxpayer money is to artificially inflate UK house prices by a bit more, as they were obviously not inflated sufficiently when Sunak cut the stamp duty a couple of years ago when house prices were then artificially inflated by another 20%.

What a joke. Is there nothing that these politicians will not do to keep UK house prices at 10x or 12x average earnings, when all this does is disadvantage many of our young people who have no chance to ever afford a house.

Would not be surprised to see her try to pass legislation soon to make any falls in UK house prices illegal. Anything to keep the UK house price Ponzi scheme going.


https://www.independent.co.uk/news/uk/p ... 71669.html

Why not just suck it up and accept the reality that the government is going to keep the Ponzi scheme going indefinitely, buy yourself a house and stop whingeing about it on here?

I have a house dude but what has that got to do with anything? Affordable housing is an essential part of a decent society, and if you have no concern at all for all of the young people who will never be able to afford their own house then that is fine. At least everyone knows where you stand.

I am sure there are many like you who are only interested in selfishly watching their own house price rising forever.

[Mike4]

So house prices are up 15% in the last year, and so Truss thinks that the best thing to do with our taxpayer money is to artificially inflate UK house prices by a bit more, as they were obviously not inflated sufficiently when Sunak cut the stamp duty a couple of years ago when house prices were then artificially inflated by another 20%.

What a joke. Is there nothing that these politicians will not do to keep UK house prices at 10x or 12x average earnings, when all this does is disadvantage many of our young people who have no chance to ever afford a house.

Would not be surprised to see her try to pass legislation soon to make any falls in UK house prices illegal. Anything to keep the UK house price Ponzi scheme going.


https://www.independent.co.uk/news/uk/p ... 71669.html

Why not just suck it up and accept the reality that the government is going to keep the Ponzi scheme going indefinitely, buy yourself a house and stop whingeing about it on here?

I have a house dude but what has that got to do with anything? Affordable housing is an essential part of a decent society, and if you have no concern at all for all of the young people who will never be able to afford their own house then that is fine. At least everyone knows where you stand.

I am sure there are many like you who are only interested in selfishly watching their own house price rising forever.

Now your just being silly, putting words in my mouth I never said. This is an investment site, not a social engineering site.

And as it happens, all four of my kids have afforded their own houses recently with no help from me, so your assertion that young people will never be able yo afford their own houses is simply not true. I grant that 'some' young people (and old people) will never afford a house but it has been ever thus.

[dealtn]

Some places are just hollowed out by second homes.

V8

Perhaps something should be done about all those selfish sellers then perhaps?

[DrFfybes]

Some places are just hollowed out by second homes.

V8

Perhaps something should be done about all those selfish sellers then perhaps?

Yes - ban them from selling them when they move. That will sort out the second home owners.

erm,...

Paul.

[dealtn]

Some places are just hollowed out by second homes.

V8

Perhaps something should be done about all those selfish sellers then perhaps?

Yes - ban them from selling them when they move. That will sort out the second home owners.

erm,...

Paul.

Exactly. It's ridiculous. Yet the asymmetry on buyers seems to raise few issues with many. Creation of second home buying and "hollowed" out communities isn't a one-way street is it? Always convenient to blame those that bring money into that community rather than those that by definition remove it.

[formoverfunction]

I have a second home, I was once harangued by a local, although I've owned it for nearly 25 years, about "stopping young people from buying a home" after I'd calmed her down, we got talking. She then went on to tell me her son worked in my small town! Serendipity. The joy of telling her "oh, he's one of those people who stop our young people from getting jobs is he...." She's the only one in all that time.
Maybe if we ban second homes we should also ban all social movement as well? I mean do we really want people from beauty spots cluttering up everywhere else? Going to out university towns, looking for employment or training.
I joke, but I live close enough, just under 2 hours from London, but it's enough to distort local house prices. Could we also ban commuters as well? Just hike all train fares so we don't miss anyone out is my stance....and stop people using Zoom just to make sure they can't remote work.

[servodude]

Some places are just hollowed out by second homes.

V8

Perhaps something should be done about all those selfish sellers then perhaps?

Yes - ban them from selling them when they move. That will sort out the second home owners.

erm,...

Paul.

Exactly. It's ridiculous. Yet the asymmetry on buyers seems to raise few issues with many. Creation of second home buying and "hollowed" out communities isn't a one-way street is it? Always convenient to blame those that bring money into that community rather than those that by definition remove it.

Hard to bring anything to a "community" if all you do is hold a property in it. Nothing agin second homes - but tax them appropriately

[dealtn]

Some places are just hollowed out by second homes.

V8

Perhaps something should be done about all those selfish sellers then perhaps?

Yes - ban them from selling them when they move. That will sort out the second home owners.

erm,...

Paul.

Exactly. It's ridiculous. Yet the asymmetry on buyers seems to raise few issues with many. Creation of second home buying and "hollowed" out communities isn't a one-way street is it? Always convenient to blame those that bring money into that community rather than those that by definition remove it.

Hard to bring anything to a "community" if all you do is hold a property in it. Nothing agin second homes - but tax them appropriately

So the seller takes away any spend from that community but the buyer might spend in the local pub,shop, attractions etc. Its all down to the buyer that the community is "hollowed out"?

Whether its a local community, or a country, deterring inward investment isn't a great idea.