The Conservative Party

Brewster's millions said:
Not really true though, is it?

Are people buying a house for four, five hundred grand genuinely wealthy?

I would expect these types of buyers to be the most constrained in terms of raising their cash deposits, so the removal of stamp duty could actually have an unusually large benefit for them.
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Only if the prices don’t rise to reflect what the stamp duty would have added. When Sunak froze it, post Covid, it saw a 20% increase in house prices, in 2 years.
Of course, it could be one of those ‘mental taxes’, where people are more inclined to move house if the price they see is the most they’ll pay?
 
The Light Was Yellow Sir said:
Only if the prices don’t rise to reflect what the stamp duty would have added. When Sunak froze it, post Covid, it saw a 20% increase in house prices, in 2 years.
Of course, it could be one of those ‘mental taxes’, where people are more inclined to move house if the price they see is the most they’ll pay?
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That’s always the risk when a purchase tax is removed, prices may simply adjust so that the transaction cost is unchanged, but I think it’s difficult to draw solid conclusions from the post-COVID freeze.

The reduction in stamp duty was for a finite period only and there was obviously an incentive to complete transactions quickly, and bank rate was at a record low as well giving another incentive to move fast.

Also, for mortgaged properties, house prices would need to increase by a magnitude of the stamp duty saving for purchasers not to see improved affordability. So I would agree with your suggestion of a mental aspect to the tax, given that even a higher purchase price would still be more affordable for most.

Of course, if the abolition were to become a serious prospect ahead of the next election then you would have to think that housing activity would be severely reduced for a period, with prices likely falling in order to secure a sale, so it might not prove especially popular after all.
 
Brewster's millions said:
That’s always the risk when a purchase tax is removed, prices may simply adjust so that the transaction cost is unchanged, but I think it’s difficult to draw solid conclusions from the post-COVID freeze.

The reduction in stamp duty was for a finite period only and there was obviously an incentive to complete transactions quickly, and bank rate was at a record low as well giving another incentive to move fast.

Also, for mortgaged properties, house prices would need to increase by a magnitude of the stamp duty saving for purchasers not to see improved affordability. So I would agree with your suggestion of a mental aspect to the tax, given that even a higher purchase price would still be more affordable for most.

Of course, if the abolition were to become a serious prospect ahead of the next election then you would have to think that housing activity would be severely reduced for a period, with prices likely falling in order to secure a sale, so it might not prove especially popular after all.
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Indeed. It’s a tax that, if it’s going to be abolished, should be done without any announcement. Given the vanity of politicians, sadly, that’s hugely unlikely.
 
Johnny Mars Bar said:
You pay stamp duty on any property over 125k don’t you?

Correct me if I’ve missed something - only skim read the piece on the BBC - but buying a £125k house doesn’t make you “wealthy”. It’s first time buyer territory.

Hard to find a property cheaper than that that isn’t full of asbestos and bullet holes these days.
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My son bought a newbuild in York a couple of months ago - ex-renter - cost - £230k for an end of terrace 2 bedroom. I read earlier that the proposed changes to stamp duty is just 1.6% of the cost of the average UK house sale. Less than £5k.

I bought the house where I live nearly 30 years ago - at that time it was about 2.5 times my annual salary. Houses on my street are now going for nearly 7 times the salary I was on when I retired 4 years ago. All the stamp duty change does is reward those already owning property particularly at the higher end. The biggest barrier to buying and selling is the disparity between incomes and prices - which is only getting wider. The answer is reduce prices or massively increase wages both of which are electoral and economic suicide
 
bluethrunthru said:
My son bought a newbuild in York a couple of months ago - ex-renter - cost - £230k for an end of terrace 2 bedroom. I read earlier that the proposed changes to stamp duty is just 1.6% of the cost of the average UK house sale. Less than £5k.

I bought the house where I live nearly 30 years ago - at that time it was about 2.5 times my annual salary. Houses on my street are now going for nearly 7 times the salary I was on when I retired 4 years ago. All the stamp duty change does is reward those already owning property particularly at the higher end. The biggest barrier to buying and selling is the disparity between incomes and prices - which is only getting wider. The answer is reduce prices or massively increase wages both of which are electoral and economic suicide
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Didn’t lenders start to offer staggering 40 yr mortgages to help
 
mosssideblue said:
I agree and may be wrong but I believe many were taken.
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regardless of the monthly amount to get through a mortgage and then in subsequent months that money you were paying is now your own AND you have a roof over your head takes such a load off. Its a freedom that in many ways the establishment does not want us to have.

I remember being in a meeting with a senior exec of a FTSE 100 company ( I was a Union negotiator ) and she said the quiet bit out loud. They didn't want young single people - young and feckless - they didn't want the over 50's - working down to retirement - the ideal employee's were youngish, married or in a relationship preferably with young kids and a mortgage because they could be "utilised by the business".

Needless to say the HR rep who was in the meeting was keen to point out that this was a theoretical, personal view and not the core values of the business because he knew what that meant
 
BTH said:
Literally anyone plucked out of any 'Spoons at last orders would have made a better PM than Johnson TBF.
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I'd have made a better Tory PM than him and I am never a Tory - if I accept that Brexit became a given I can confirm I would not have spent lockdowns as an excuse to party and give my donors bungs. If you go back before Brexit then as a leader and unlike Johnson I would not have exorcised experienced people from the Party because they didn't agree with me and finally I do not have a track record of 30+ years of beings sacked from every job I have had for lying - its the little things that matter
 
another point is people with ADHD don't get a motability car. For people who do get one it isn't free a child with ADHD may be eligible for a Motability car, but only if they also receive the higher rate mobility component of the Disability Living Allowance (DLA), or the equivalent enhanced rate mobility component of Personal Independence Payment (PIP) (or Child Disability Payment in Scotland). This means that ADHD alone is not enough; there must be other significant mobility impairments causing difficulties, such as anxiety or behavioural issues that prevent them from travelling safely - so she doesn't know how the system works - MP for 8 years, Opposition leader for almost one year and she makes statements that are provably false
 
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