speedking

How is raising the stamp duty threshold supposed to help first time buyers? They had £100k to spend on a property including 1% stamp duty. Now they still have £100k to spend but don't have to give the government any. Within a few months sellers will realise this and house prices will go up £1000 to compensate for the extra buying power. I don't get it Houses that are below the threshold will be more sought after and so become more expensive, supply and demand, just like houses at £249999 are now.

Graz

It doesn't.

Can't get much round here for less than 120k anyway, if they had raised the threshold to 160k it may have been a bit more realistic.

speedking

But prices would still adjust to negate the benefit in a very short space of time, irrespective of the actual level.

GCollier

You're right - for buyers at the £100k level it won't make a difference. What the stamp duty bands do is act as a brake point on prices rising. Not many people are going to spend £125k, £260k or £520k on a house, so houses will be held in check at the stamp duty boundaries unless prices go up significantly that they can jump a good way above it.

It still doesn't stop the tax being one I loathe though, as it's a very large deterrent to peoples mobility in an age where flexibility to move where employment demands is important. If moving house cost a couple of £k, rather than the £20k it can realistically cost then it would be easier to move more often as and when required. The government would lose too much tax revenue to consider it though.

Gary.

Tiggs

stamp duty has no real effect on prices under 500K...its all just to look nice.

pslewis

Stamp Duty is purely the Government taking a bit of the money you would have paid to the buyer and using it for the sick, elderly and education.

It makes tit all difference to anything, there is £x to spend on a house - you either buy or you don't ........... its how the Pie is divided up that is the stamp duty, less to the seller is all.

What it DOES do is give 'Hold Points' at £new level, £250k and £500k ... thats about it.

Pete

camk

property taxes on the continent are MUCH higher so think yourself lucky its only 1%.