Stamp duty holiday ends, replaced by New Buy Guarantee

 
A woman looking at properties in an estate agent The stamp duty holiday was introduced in 2010 to help first time buyers

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The stamp duty holiday for first-time house buyers has ended, meaning they will join others in paying 1% tax on properties worth more than £125,000.

The government says it ended the holiday because it had been ineffective in helping people to buy.

It is introducing a New Buy Guarantee scheme instead, which it says will be better at getting people on to the housing ladder.

The stamp duty holiday was introduced in 2010.

It allowed first-time buyers to save up to £2,500 on the purchase of their first home by exempting them from stamp duty on homes worth up to £250,000.

Under the New Buy Guarantee, the government and major house builders will guarantee part of the loan from banks to first-time buyers.

This is intended to help those with smaller deposits to get on the housing ladder.

The government also announced a new 7% rate on homes over £2m last week.

And it further outlined a clampdown on stamp duty avoidance at the higher end of the market.

 

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  • rate this
    +1

    Comment number 73.

    dr bob - negative interest rates(!) amd I still couldn't afford a deposit! You obviously don't live in the real world. Im 30, live in Bristol, earn £28k, but after rent I struglle to pay off even £5k debt. Because of hoarders, a recession caused by ur generations debt culture, my dreams get further and further away. Forget the 1%, u should only be able to own 1 house - Its a home not an asset!

  • rate this
    +1

    Comment number 72.

    gsum - you are my hero!!

    I will retire at 75 with no pension, no savings, and no nest-egg. Frends who's family bought their house in the 70s for the same as my parents but in the SE post not the midlands, is able to use their effortless equity to buy up any properties before I even have a chance. No fair, im harder working but there is nothing i can do.

  • rate this
    0

    Comment number 71.

    68 Doctor bob
    What about SDRT when buying shares. Appaling since the rich (again) avoid it by using hedge funds and CFD hedge. But if you have a pension you pay it all the time, especially if you have a low risk FTSE tracker, As soon as a company drops out of the FTSE100 you pay the tax to rebalance the fund. You also pay 2 lots of trading charges (commission) which pays the massive bonuses.

  • rate this
    0

    Comment number 70.

    66.alexwhisper
    I cant stand these cut off points the government insist on creating-in this case the £250k cut off point. the country varies immensely.I live in rural west sussex where a small 3 bed family home for the two of us and our 2 boys..2 dogs retails at over£250k

    That cut-off point was established when only the supremely rich moved. It hasn't changed in centuries so is grossly unfair

  • rate this
    0

    Comment number 69.

    Whew! The SDLT holiday has ended.. now for taxing transfers of property not for value such as deeds of gift etc. Also statutory charges to be registered against property owned by people who have lied about their mortgage details & in doing so have got the whole nation deeper into private debt. After all were all in this together folks!

  • rate this
    0

    Comment number 68.

    54.Scarf66
    Spend £ 249999 on a house and pay £2500 stamp duty.

    Spend £ 250001 and pay £ 7500
    This distorts the market significantly and should be remedied as a priority

    => It should be scrapped and the gov should stop trying to keep prices high so they can count on this evil tax as a big source of income.

    Same with the despised death duty.How politicians can sleep at nights beats me

  • rate this
    +1

    Comment number 67.

    I just bought my 1st house on my own yesterday after 4 years of very economical living, saving with low interest rates, and a smaller than average salary. Living with my parents made it possible.

    Although I am now a house owner, I would be happy if house prices now fell so that other 1st time buyers could enjoy the satisfaction that I've been feeling for the last 24 hours!

  • rate this
    0

    Comment number 66.

    I cant stand these cut off points the government insist on creating- in this case the £250k cut off point . the country varies immensely. I live in rural west sussex where a 3 bed small family home for the two of us and our 2 boys and 2 dogs retails at over £250k. And we are soon to be first time buyers. Regional variations need to be taken into account including wage, benefitsetc

  • rate this
    0

    Comment number 65.

    Problem with taxing/charging property investors is they will simply pass on any costs to their tennants. Then they will start buying houses in their partners, childrens name, etc...

    The greedy rich always find a way to avoid tax.

    Next we'll be hearing that more tax could be collected if BTL investors paid a lower rate of stamp duty....the tories agreed with income tax!

  • rate this
    +1

    Comment number 64.

    Back on message - I think that if you are buying a house and you or your family are not going to live in it on a permanent basis then it would be possible to charge a higher rate of stamp duty. This would make it harder for the 'investors' to out compete buyers of a family home.

  • rate this
    0

    Comment number 63.

    Stamp duty is a drop in the ocean compared to the real culprit, vis the cost of buying a property. Prices have been driven upwards by working couples who employ nannies and nurseries to look after children that the wife should be caring for. They have used their joint incomes to finance the purchase of homes that could not be afforded on one salary alone. Result? Artificially high prices.

  • rate this
    +1

    Comment number 62.

    The property market is going to crash sooner rather than later, so just let it. It'll be a welcome change to actually be able to afford property for the first time in years.

  • rate this
    +1

    Comment number 61.

    55 Dr Bob
    I was saying that student rents are excessive, because they are. The fact that a house or flat is carved up into just bedrooms and usually too many living in it for its size adds wear and tear. High rents reflect this wear and tear so students should not be penalised when it happens, by having their deposit docked, it is built into the rent.

  • rate this
    +1

    Comment number 60.

    Why should tennants look after a house that isn't theirs? They have no incentive, its a risk you take.

    All these buy-to-let property investors and holiday-homers are making lots of money and distorting the housing market. They should be taxed to the hills.

    If these investors don't like it they can sell their ''investment'' to people that can make them into their homes.

  • rate this
    0

    Comment number 59.

    If govt does not / cannot remove stamp duty altogether for modestly priced properties it should at least make it a gradual sliding scale so that lumps don't form around £250 k / £ 1 million etc.

  • rate this
    +2

    Comment number 58.

    Abolish stamp duty for properties less than £500k and double it for all second homes.

  • rate this
    0

    Comment number 57.

    I disagree with govt policy on this issue.

    They are effectively taking away a 1% reduction on the price in return for encouraging new build first time buyers paying more for the property by artificially making the deposit required more affordable.

    As the saying goes - buyer beware.

  • rate this
    +1

    Comment number 56.

    I find it funny that HYS want to talk about not so really important issues. But wheres the HYS on the men of foreign origin YET AGAIN accused of grooming white girls. Or is that too PC for the BBC?

  • rate this
    0

    Comment number 55.

    51.Violet Mildred
    The wear and tear is built into the rent, so you expect extra costs each year. Students are fleeced by unscrupulous landlords


    Wear and tear is one thing, wanton damage and filth clearup is another. My foster mum sold a converted house because it cost more than a deposit to return each flat to a good state for a subsequent tennant. Landlords are often fleeced by bad tenants.

  • rate this
    +3

    Comment number 54.

    Spend £ 249999 on a house and pay £2500 stamp duty.

    Spend £ 250001 and pay £ 7500.

    This distorts the market significantly and should be remedied as a priority.

 

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