The Official Locatable Blog
The Official Locatable Blog
The Autumn Statement delivered by the Government this week was largely unsurprising and continued the ‘responsible recovery’ theme adopted by the Chancellor.
Whilst much of the property market was looking at Capital Gains levies for overseas owners and funding to unlock development sites, there was some anticipation that a change to Stamp Duty brackets would form part of the Chancellor’s Autumn Statement. However, this did not materialise.
Stamp duty land tax (SDLT) is a significant source of revenue for the Government, but can also be a huge burden for those buying property, and many have argued that the approach needs to be updated.
The current structure of Stamp Duty starts at 1% on sales between £125,000 to £250,000 rising to 3% on sales up to £500,000 and then 4% on homes costing up to £1million. This means that British homeowners pay the highest property taxes in the developed world.
Robin Lumley-Savile, Chief Marketing Officer at Locatable, states “There is a risk that one hand buyers are being incentivised onto the property ladder, however on the other they are being taxed heavily for that decision. As we see increased price growth, it could be argued that stamp duty bands are increasingly out of date and need adjusting.”
Our data team have crunched the Land Registry’s price paid data going back to 2009. In the price range of £250k-£300k, from Jan 2009 – Sept 2013, there were over 254,000 such transactions on record. The total value of these property sales was £68.9bn, meaning Stamp Duty receipts at 3% on those transactions brought in more than £2bn.
In the last year to date that we have data for (Sept 2012 – August 2013), there were nearly 60k transactions in England and Wales between £250k-£300k. Those transactions represent a total of around £16bn in sales and £480m in Stamp Duty receipts. The receipts for the year 2012 were around £450m and for 2011 were around £420m.
To make housing affordable, it’s not just price that needs to be considered, it’s the costs associated with purchasing that also need to affordable. Just as income tax brackets move with inflation, should we be expecting to see that same applied for stamp duty.
This week all the noise is about the Autumn Statement on 5th December. So what is the Autumn statement and how will it affect UK households? The Autumn statement is one of two annual economic statements given by the Chancellor of the Exchequer outlining the government’s tax and spending plans. Originally is was intended toContinue Reading
The Land Registry today released its historic Price Paid Data, unleashing data on over 18 million residential transactions across England and Wales. The dataset extends back to 1995 and contains over 400 million data items. This is one of the world’s largest datasets released of its kind and is used to create the ever popularContinue Reading
Wow, where has 2013 gone? Do you remember the heat wave this summer? Wasn’t that great? Well fear not, it may be getting colder outside but the property market seems to be maintaining it’s heat. Good news for owners, a bit more challenging for those looking to get on the property ladder. The government’s Help toContinue Reading
It seems we have touched on a quite a pertinent issue in our latest blog. We should admit that we fell foul of the exact point that we were trying to make. The point being that consumers are not fully aware of the difference between price (asking price) and value (sold price). In our originalContinue Reading
The UK housing market is everyone’s favourite topic at the moment, whether it’s in conversations outside the school gates or in hotel conference rooms in Hong Kong. The UK market as a whole seems to be adjusting well to recovery mode, with a 1.3% annual price rise according to the latest data from the Land Registry, but it’s LondonContinue Reading
It’s already autumn again in London, leaves are falling and the trees are shining in their brightest colors. It’s our favourite time of the year. It’s a time for new beginnings as well as an end to things past. And, of course, if you want to find a new home in time for Christmas, nowContinue Reading
You know it’s September when you starting seeing Christmas decorations for sale in the local department stores or you go out for dinner and they are taking reservations for Christmas parties! It’s bizarre that while psychologically summer isn’t yet over, we are being asked to think about Christmas. However if you are buying a propertyContinue Reading
You sign the offer, legally binding yourself to follow through on the purchase of your new home, barring any problems found in the inspection. Yet, a few weeks later, you learn that the home is on a flood plane or learn that the neighborhood is less than desirable. Now you’re stuck. If you back outContinue Reading
If you are one of the many prospective homebuyers that have been encouraged by the government’s Help To Buy scheme, or for any other reason, then this quick and simple guide should point you in the right direction. Finances Be clear about how much you have (individually or as a couple) to put towards theContinue Reading