Reply to: New stamp duty rates just announced

[OwlHoot]

Although illogical, the old stamp duty "steps" were constraints (albeit artificial and not very substantial) on house price increases.

Despite the Government's stated aim of making property more affordable, eliminating those constraints may have been the intention so close to the election.

From 2014-12-03 Autumn Statement: Osborne reveals stamp duty reforms

The head of the Office for Budget Responsibility, Robert Chote, said stamp duty reform could put up house prices in some areas, predicted prices would rise where the tax had fallen, and fall where it had risen. ...

I rest my case

This property stamp duty change is simply a trick to try and prop up property prices, and halt a possible slide (which had already shown signs of starting), before the election.

[vetran]

from the horses mouth

HM Revenue & Customs: Land and property Stamp Duty Tax calculator

[TheCyclingProgrammer]

good news, sorry had the wrong values in the spreadsheet, we only save £500 we were at the top of the band but its better than a raise.

we had the same, some idiot built a driveway with no drainage sloping towards the house. we got quoted £7K for rising damp - thieves. £100 of drainage and it will be sorted.

Yes, we have had a quote of about £800 for chemical DPC and replastering (£450 for approx. 1 sqm of plastering!) and all the research I've done suggests this is rubbish.

We revisited the property with a builder and it looks like the damp is mostly a combination of high ground levels (£600 quote to cut back paving and install a French drain), possible leaking down pipe, leaking or badly installed downstairs shower (possibly not tanked or sealed properly) and poor ventilation. Builder quoting about £65/sqm for any replastering needed which is a bit more sensible!

Once we are in I might fork out a few hundred quid for a proper independent damp survey and get more quotes for the French drain.

[Platypus]

I just put in an offer on a house & have an offer on mine. Shafted both ways now.

Don't worry, cheaper houses attract less tax

[vetran]

£301k, yes, South East.

Handy really. Our survey raised some issues, damp mostly but hopefully nothing too major. We were looking at anywhere from £1-2.5k to get the issues sorted and our vendor isn't willing to negotiate at all on price (we got it £9k under asking) so this will help us cover those costs with a few grand to spare.

Biggest hurdle for us is convincing them to break the chain and exchange next week in return for us continuing at our original offer price, we need to exchange by Jan.

good news, sorry had the wrong values in the spreadsheet, we only save £500 we were at the top of the band but its better than a raise.

we had the same, some idiot built a driveway with no drainage sloping towards the house. we got quoted £7K for rising damp - thieves. £100 of drainage and it will be sorted.

[Lewis]

Okay now makes sense.

That's a massive saving. This should push house prices up the stratosphere.

Except over £937K it will cost more so I see it as squeezing prices - lower ones up, higher ones down

[TheCyclingProgrammer]

Good news then.

275K?

you aren't in the south East I suppose?

£301k, yes, South East.

Handy really. Our survey raised some issues, damp mostly but hopefully nothing too major. We were looking at anywhere from £1-2.5k to get the issues sorted and our vendor isn't willing to negotiate at all on price (we got it £9k under asking) so this will help us cover those costs with a few grand to spare.

Biggest hurdle for us is convincing them to break the chain and exchange next week in return for us continuing at our original offer price, we need to exchange by Jan.

[fullyautomatix]

It says 3,750

0% of 125K = 0
2% of 125K = 2.5K
5% of 25K = 1.25K

Total = 3,750

rate only applied to amount in that band

Okay now makes sense.

That's a massive saving. This should push house prices up the stratosphere.

[vetran]

oops

[Lewis]

Not sure that chart is correct.

How will 275K pay only 3450 ?

It says 3,750

0% of 125K = 0
2% of 125K = 2.5K
5% of 25K = 1.25K

Total = 3,750

rate only applied to amount in that band

[TechJinx]

Although removing the old stamp duty "steps" seems the obvious thing to do, those steps were constraints (albeit artificial and not very substantial) on house price increases.

not true - it just meant that if you try to sell a house for £255-£270k you get chancers offering you motorbikes and £5k for your shed.....
(true story)

[OwlHoot]

Although illogical, the old stamp duty "steps" were constraints (albeit artificial and not very substantial) on house price increases.

Despite the Government's stated aim of making property more affordable, eliminating those constraints may have been the intention so close to the election.

[fullyautomatix]

Stamp duty cut for homebuyers as Osborne kills off hated slab tax | This is Money

handy chart.

Not sure that chart is correct.

How will 275K pay only 3450 ?

[barrydidit]

Stamp duty cut for homebuyers as Osborne kills off hated slab tax | This is Money

handy chart.

Buyers of £600,000 homes will also save £400,000

Really?

If £250k band had moved with house price inflation it would stand at £787k

^This. Why a mansion tax is a fecking stupid idea.

[TechJinx]

completed 3 months ago - would have saved about £1.1k

our buyers would have saved £5k on the £7.5 and a bit they paid so I bet they're livid


Seller should still pay though - thats the real reform this needs