“Tory stamp duty cut could cost first-time buyers twice as much as they save, leading think tank says”

“… Because this is a permanent reduction in stamp duty for first-time buyers, it will actually increase the price of properties by twice the size of the tax cut,” the think tank said. “As such prospective first-time buyers’ net costs will actually increase not decrease.

“In reality, a first-time buyer purchasing an average priced property would experience a £3,200 price increase to offset the £1,600 tax cut.”

Those buying cheaper properties, however, are likely to save more in stamp duty than the extra they have to pay in inflated house prices, it added. The stamp duty cut also means that more of a buyer’s savings can go towards a deposit, enabling more to afford a home.” …

http://www.independent.co.uk/news/uk/politics/stamp-duty-cut-latest-budget-saving-twice-more-save-buyers-resolution-foundation-philip-hammond-a8072601.html

One thought on ““Tory stamp duty cut could cost first-time buyers twice as much as they save, leading think tank says”

  1. Looks like the Independent are cribbing off my comments.

    The Conservatives continue to think subsidies for developers are the way forward even though when its the EU giving subsidies they think that is a bad idea. Could this hypocrisy be because developers are major donors (or sponsors or indeed “investors”) in the Conservative Party?

    The only ways to fix the broken housing market are:

    a. To regulate major developers to sell of their land banks and allow small developers entry into the market;
    b. To stop selling off social housing and build more instead.

    “Where has all the common sense gone,
    Long time passing,
    Where has all the common sense gone,
    Long time ago,
    Where has all the common sense gone,
    Killed by egos every one,
    When will they ever learn,
    When will they ever learn.”

    Like

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