Quote:
Originally Posted by Mick
But having no Stamp Duty to pay, if buying a £150,000 house. Is still money in the first time buyers hand. Not a gimmick. Labour will have to tax folk to death to pay for their large borrowing needs. Thankfully, let’s hope they never get in power.
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The problem is the lack of supply driving up house prices beyond what is affordable. The Stamp duty cut is good but it will quickly cause prices to rise so that the sellers get the benefit of the cut, not the buyers. The breathing room giving by the cut will only give people more money to bid a higher base price for the house.
The main impact of the cut will be to ensure the market keeps growing for a bit longer. If they didn't do that house prices would stall sooner. It's the same as all the other government schemes, they just allow people to get into more debt or get some money from the government to put into the housing market. None of it helps with the main issue.