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The Budget and Stamp Duty

landofdan Avatar
6y, 10m agoPosted 6 years, 10 months ago
with the new budget and stamp duty being raised to £250k,

does anyone know when this takes effect?

is it immediate?

i hope it is im trying to buy a house at the moment.

Thanks,

Dan
landofdan Avatar
6y, 10m agoPosted 6 years, 10 months ago
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Comments/page:
#1
“I will double the stamp duty allowance for first time buyers to £250,000 from midnight tonight,”
Alistair Darling
#2
1st April I think
#3
Spriggan
1st April I think


As above, even quicker!
#4
nice!
hope it is.
will have saved me a fair few quid.
[mod]#5
Dan. Are you a "First Time Buyer?"
1 Like #6
landofdan
nice!
hope it is.
will have saved me a fair few quid.


Congrats! And I took that quote directly from his mouth, so yes, yes, it is.
#7
magicjay1986;8193049
Dan. Are you a "First Time Buyer?"

yes first time buyer, offer accepted and just getting a solictor sorted now, only found out yesterday that i'd have to pay stamp duty!
chuffed to bits!
[mod]#8
landofdan
yes first time buyer, offer accepted and just getting a solictor sorted now, only found out yesterday that i'd have to pay stamp duty!
chuffed to bits!


Brilliant. Well done you!

I am incredibly puzzled as to how the Government will monitor who is and who isnt a first time buyer!
[mod]#9
Carley
If your name doesn't appear on the land registry then you are a first time buyer... just heard that on BBC news.


So they are basing it on honest disclosure by the buyer?

You could sell your house and then go in to rented. Then decide 2 months later to buy another house. Using this method you would then be classed as a First Time Buyer...
#10
magicjay1986
Brilliant. Well done you!

I am incredibly puzzled as to how the Government will monitor who is and who isnt a first time buyer!

As below
Carley
If your name doesn't appear on the land registry then you are a first time buyer... just heard that on BBC news.

You beat me too it! I thought that would be quite simple. Which means although we have no stamp duty this time around anyway that as long as I keep my name off the mortgage (which it is atm) will leave me open as a FTB still, but probably wont be going for something over £250k for a very long time!
#11
magicjay1986
So they are basing it on honest disclosure by the buyer?

You could sell your house and then go in to rented. Then decide 2 months later to buy another house. Using this method you would then be classed as a First Time Buyer...


No as you would appear as a previous home owner.
[mod]#12
awoodhall2003
No as you would appear as a previous home owner.


On what document would you appear as a previous homeowner?
#13
It comes into effect midnight tonight

EDIT: read conflicting news that it is either midnight tongiht or 1st April!?!?

Just saved myself 2 grand as am about to complete on a house in the next 2 weeks!!

Happy days
[mod]#14
Carley
They were interviewing Simon Williamson an independent financial planner and asked him what is a first time buyer, he answered "as far as i understand it if you've been on the land registry before then you've been a buyer, so if you haven't you're a first time buyer."

and he finished of to confirm his statement "as far as i'm aware that's the case"

so not conclusive if this is the method the govt will adopt.


...but there is no way of searching the Land Registry to discover if a person owns/owned a property as our system searches by property address. This would work in France as their Land Registry system (Cadastre) is based on an applicants name and not property.

I am intrigued. The only possible way is that the Government say that the buyer must disclose if they have ever owned a property before. After all, tax evasion is illegal.
#15
magicjay1986
On what document would you appear as a previous homeowner?

Good point actually, didn't think of the way you search. It is that of a property not that of a person...hmmm...all about 'honesty' then I suppose! :w00t:
[mod]#16
awoodhall2003
Good point actually, didn't think of the way you search. It is that of a property not that of a person...hmmm...all about 'honesty' then I suppose! :w00t:


It must be up to the buyer to disclose whether this is their first house purchase.

As I have said above, tax evasion is illegal so I guess if you were not telling the truth you could have charges brought against you by the Inland Revenue.
#17
magicjay1986
It must be up to the buyer to disclose whether this is their first house purchase.

As I have said above, tax evasion is illegal so I guess if you were not telling the truth you could have charges brought against you by the Inland Revenue.


Yeah I agree, but won't stop people from trying. Also leaves some nice little work arounds for people like me. As I am a student I have not put my name down on the mortgage for a shared ownership scheme, so it just my fiancees name on it. Thus if/when we want to move I will still be classed as a FTB, unless we staircase and I increase the mortgage.

But as you say get caught lying, and your done for.
[mod]#18
awoodhall2003
Yeah I agree, but won't stop people from trying. Also leaves some nice little work arounds for people like me. As I am a student I have not put my name down on the mortgage for a shared ownership scheme, so it just my fiancees name on it. Thus if/when we want to move I will still be classed as a FTB, unless we staircase and I increase the mortgage.

But as you say get caught lying, and your done for.


...this was going to be my next point, your fiancee is not going to be a FTB in her next transaction and if you are also going to be purchasing with her, where does that leave you?

Considering they want this implemented by midnight, there are plenty of questions unanswered.
#19
magicjay1986
...this was going to be my next point, your fiancee is not going to be a FTB in her next transaction and if you are also going to be purchasing with her, where does that leave you?

Considering they want this implemented by midnight, there are plenty of questions unanswered.


I agree it will mean she will not, but it raises the question of what about if only one person is? Or of course if it is inexpensive I can get it anyway when I'm working. But the former is more important.

Surely they should have drafted it all ready for the budget, but no release of any further information it seems yet!
[mod]#20
awoodhall2003
I agree it will mean she will not, but it raises the question of what about if only one person is? Or of course if it is inexpensive I can get it anyway when I'm working. But the former is more important.

Surely they should have drafted it all ready for the budget, but no release of any further information it seems yet!


They ought to try and release something before 5pm as most solicitors close at that time and they really need to know before tomorrow!
#21
magicjay1986
They ought to try and release something before 5pm as most solicitors close at that time and they really need to know before tomorrow!


Also whether it is retrospective of deals that have been agreed, but stamp duty not paid yet.
Could be a messy few days or weeks if they don't get something out quick!

It almost seems like he said it on a whim! Undoubtedly he didn't but with no further release of information or anything it seems very disorganised.
#22
lol @ 10% increase on cider
1 Like #23
I was recently considering buying my first house a few weeks back. However, I decided against it as the fact remains that house prices are still over inflated, and hence making a mortgage expensive despite the low interest rates. This cut in stamp duty does nothing to the monthly mortgage payments.

I thoroughly believe there will be a double-dip in house prices. The recovery over the past few months has been created by artificially low interest rates and the rush of buyers hoping to snap up a property whilst prices are seeming to recover.

And some bedtime reading material...
Clicky
banned#24
Alfonse
lol @ 10% increase on cider


My fella only likes cider.

I am sure he will be well chuffed.

Is it to stop cider swigging teenagers? :?
banned#25
thefilbertfox;8198134
I was recently considering buying my first house a few weeks back. However, I decided against it as the fact remains that house prices are still over inflated, and hence making a mortgage expensive despite the low interest rates. This cut in stamp duty does nothing to the monthly mortgage payments.

I thoroughly believe there will be a double-dip in house prices. The recovery over the past few months has been created by artificially low interest rates and the rush of buyers hoping to snap up a property whilst prices are seeming to recover.

And some bedtime reading material...
Clicky

they gave always been over-inflated. Doesnt mean they wont continue rising. Cant see them going down again like you suggest at all. There just isnt enough houses in the UK hence rising prices and builders arent building at the moment like they used too.

as the population is set to rise by a million every year from now on, house prices are on the up and wil continue to rise for the foreseeable future (15% so far this year and 10% last year in my area) :w00t:
#26
csiman
they gave always been over-inflated. Doesnt mean they wont continue rising. Cant see them going down again like you suggest at all. There just isnt enough houses in the UK hence rising prices and builders arent building at the moment like they used too.

as the population is set to rise by a million every year from now on, house prices are on the up and wil continue to rise for the foreseeable future (15% so far this year and 10% last year in my area) :w00t:


I would have to agree, I know someone in the sector who knows their stuff, he honestly does not believe there will be any major reduction in house pricing for at least 5 years, and then by then the whole economic climate could have changed anyway. Although obviously nothing is 100% certain with house prices either.

Personally I'd say if you can afford it, do it, as you will only kick yourself if prices go up. I know you could say you would kick yourself if they also go down, but at least you would have had the enjoyment of the property for a little.
#27
Have a look at this graph that shows the stages of a bubble...

http://upload.wikimedia.org/wikipedia/commons/thumb/4/4b/Stages_of_a_bubble.png/800px-

And compare...

http://www.housepricecrash.co.uk/graphs/generated/homepage.png

Scary similarity don't you think? Make of it what you will.
banned#28
thefilbertfox;8200989
Have a look at this graph that shows the stages of a bubble...



And compare...

http://www.housepricecrash.co.uk/graphs/generated/homepage.png

Scary similarity don't you think? Make of it what you will.

or just look at the second graph to see there hasnt been a double dip since the chart started ;-)

cant really compare a house price graph with a share price bubble analysis
banned#29
Nationwide shows this for my house (I know its a very rough guide). Equivalent of me earning a salary of around £80,000 per year!

[FONT=Verdana, Arial, Helvetica, sans-serif][SIZE=2][COLOR=black]Results:-
A property located in [COLOR=red]Outer South East [/COLOR][COLOR=black] which was valued at [COLOR=red]£450000[/COLOR][COLOR=black] in [COLOR=red]Q1[/COLOR][COLOR=black] of [COLOR=red]2009[/COLOR][COLOR=black], would be worth approximately [COLOR=red]£499714[/COLOR][COLOR=black] in [COLOR=red]Q4[/COLOR][COLOR=black] of [COLOR=red]2009[/COLOR][COLOR=black]. [/COLOR][/COLOR][/COLOR][/COLOR][/COLOR][/COLOR][/COLOR][/COLOR][/SIZE][/FONT][FONT=Verdana, Arial, Helvetica, sans-serif][SIZE=2][COLOR=black][COLOR=black][COLOR=black][COLOR=black][COLOR=black][COLOR=black][COLOR=black][COLOR=black]This is equivalent to a change of [COLOR=red]11.05%.[/COLOR][/COLOR][/COLOR][/COLOR][/COLOR][/COLOR][/COLOR][/COLOR][/COLOR][/SIZE][/FONT]
#30
csiman
or just look at the second graph to see there hasnt been a double dip since the chart started ;-)

cant really compare a house price graph with a share price bubble analysis



Some comparisons can be made since some people treat property as investments. i.e., buy to let. For the average joe though, a house is a home and they don't care what it costs.

Wan't there a slight recovery before the big crash in the 1990s?
banned#31
thefilbertfox;8201369
Some comparisons can be made since some people treat property as investments. i.e., buy to let. .....

Fair enough :thumbsup:
thefilbertfox;8201369
Wan't there a slight recovery before the big crash in the 1990s?

Not that I recall. Had a flat that went from £43,000 down to £28,000 in 9 years in 1988-1995 :x

Still, its all swings and roundabouts as next house bought in 1995 for £57,000 and sold it in 2002 for £189,000 and then bought a house for £245,000 which was recently valued at £450,000 :w00t:

total outlay = £127,000 which is now worth £450,000

profit is more than my take home pay in 20 years!
#32
thefilbertfox
Have a look at this graph that shows the stages of a bubble...

http://upload.wikimedia.org/wikipedia/commons/thumb/4/4b/Stages_of_a_bubble.png/800px-

And compare...

http://www.housepricecrash.co.uk/graphs/generated/homepage.png

Scary similarity don't you think? Make of it what you will.


And you think that house prices will be back to an average of £70k shortly, do you?
#33
pghstochaj
And you think that house prices will be back to an average of £70k shortly, do you?


No. Those days are long gone.
They would have to get back to a level that makes them affordable for the FTB.
#34
Why do you think that?

thefilbertfox
No. Those days are long gone.
They would have to get back to a level that makes them affordable for the FTB.
#35
thefilbertfox
No. Those days are long gone.
They would have to get back to a level that makes them affordable for the FTB.


which is?
#36
Alfonse
which is?


The magic number ;-)

Good indication is a multiple of the salary as this will smooth out the effects of region.
3 x the annual income per household is the histroic mean. Since 2000 this percentage has crept up to around 6x today.

In todays world, I would think 3x to 3.5x of the household income is where it should be.
#37
thefilbertfox
The magic number ;-)

Good indication is a multiple of the salary as this will smooth out the effects of region.
3 x the annual income per household is the histroic mean. Since 2000 this percentage has crept up to around 6x today.

In todays world, I would think 4x of the household income is where it should be.


lol thats not the price of a house but the amount you can borrow in the form of a mortgage

oh dear
#38
Only true if your average buyer is an average earner. If people buy to let, ftbs are irrelevant.

thefilbertfox
The magic number ;-)

Good indication is a multiple of the salary as this will smooth out the effects of region.
3 x the annual income per household is the histroic mean. Since 2000 this percentage has crept up to around 6x today.

In todays world, I would think 3x to 3.5x of the household income is where it should be.
#39
Alfonse
lol thats not the price of a house but the amount you can borrow in the form of a mortgage

oh dear


Of course it is, which is why lenders use it to determine whether you can AFFORD a house.
Current rate is 6x which is above the average house price versus the average salary.

Maybe I should ask my boss for a pay rise? :whistling:

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