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  • Property-a-holics

    My chat with Boris - Stamp duty on his mind



    As you can see from the photo below, I had the chance to chat with Boris Johnson recently, when he came to Ipswich.



    We re-acquainted ourselves as we have met before , had lunch and auctioneered at his dinner.

    I also took the opportunity to let him know some of my thoughts on the property and housing sector.

    I asked him whether he would be looking to reduce the 3% levy on Stamp Duty and he replied that he does understand that it is a burden on property investors.

    He said he was looking to reduce spending in some areas, and increase spending in others.  We did have a good chat, but I obviously have to be discrete to some extent, but at least I had his ear for a few minutes and rest assured that I did make a case for the many challenges facing landlords and property developers!

    Let's hope he took my input on board.

    Thank you for reading and please check out some of my other content:

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    Creating "oven-ready" profit - care home

    Video case studies of my current developments

    My speaking engagements - London - July
     
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    Thanks John for that

    we can only hope that he is with us not against us

    If he is for us he will be one of the few

    DL

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    Learn Change and Adapt ?????

    All comments are for casual information purposes only. If you wish to rely on any advice I have given please ensure you obtain independent specialist advice from a third party. No liability is accepted for comments made.

    Yes let's hope so. I think one he thing  he will be is pro London, which could be very good news for the London property owners .
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    Hmm well if he is for any landlords that will be a bonus.  But regarding the pro London thing, I get the impression most of the politicians care very little about anything but London.

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    Thanks for sharing this John.  It is strange timing, because, within seconds of you posting this, this press release dropped into my inbox:

    Conservative Party leadership contender, Boris Johnson, has confirmed his interest in switching Stamp Duty liability from the house buyer to the seller as proposed by Association of Accounting Technicians (AAT).

    Last year Johnson stated Stamp Duty was “absurdly high” and last month he suggested he would consider scrapping it for homes worth £500,000 or less.

    Earlier this month, Johnson met with AAT and agreed to examine their Stamp Duty recommendation further, requesting further information which has subsequently been provided.

    Phil Hall, AAT Head of Public Policy and Public Affairs, said; 

    “AAT is naturally pleased that Boris has agreed to look at our long-standing proposal to switch Stamp Duty liability from the buyer to the seller. This will save the taxpayer £700m a year by rendering First Time Buyers Relief redundant. It will also protect the £9bn of revenue Stamp Duty generates as it will still be paid in full, simply by different people. It is also much more progressive as it will be paid on the lower priced property being sold rather than the higher priced property being bought.”
     

    The idea certainly appears to have the support of home buyers too.

    Tony Richardson and his partner Caroline Danks live with their two young children in a three-bedroom terraced house in Plymouth, Devon. They are now looking at buying a bigger house but have concerns about Stamp Duty costs.

    Tony Richardson said; 

    One of the things that’s made us delay buying a bigger house is the huge amount of upfront costs we will have to face, legal fees, mortgage arrangement fees and the biggest of all, Stamp Duty. That’s why the AAT recommendation to switch Stamp Duty liability is so attractive - it will mean we pay less as we’d only have to pay it on the house we are selling not on the one we are buying. I hope the new Prime Minister, whoever he is, seriously looks at this because it will make a real difference to people like us.” 

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    do we know if it's proposed to apply to second home / holiday home purchases also?

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    I'm hoping against hope he doesn't become PM.

    If he does I also hope he doesn't implement his proposal to force stamp duty to sellers. All those elderly people will have zero incentive to sell and exacerbate the housing crisis.

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    It makes no sense to penalise Downsizers and reward those buying larger houses in my opinion.

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    _________________________________________________________________________


    My posts are not financial advice, just a rambling guy passing time on a coffee break.
    The team at Bespoke Finance offers advice, including Limited Company Buy-to-Let , HMO Conversion and Cheap Life Insurance.

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    I kind of have to disagree.  The downsizers will have seen huge gains in the value of the property so in theory the tax should be their responsibility, not that I agree with the tax in the first place, but it would be fairer.  Kind of a CGT, though I am sure it will end up being built into the asking price.

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    I’m sure he will be Prime Minister. He’s got a decent record is London Mayor at least he knows how to delegate which is more than Mrs May ever managed to do. 

     However he’s got a huge job on his hands. I’m not sure that stamp duty will be very high upon the agenda but let’s hope so - every time I meet him I mention it ! 

    I think rather than putting the burden on the property sellers or buyers It would just be good to take it off completely.  Anything that stops anyone buying or selling cannot be useful! 

    You could argue its done the job in London by taking the heat out of the market although I have to say that’s probably because of a number of issues including foreign investment,  Brexit etc . 

    The problem for me, its affected the market everywhere else as well when it wasn’t necessary.
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    As affable as Boris is he will be a disaster as PM and will lose the Conservatives even more votes. I don't class wasting £43 million on a garden bridge a record to be proud of. Scale that to the finances of the UK and we'll be up the creek without a paddle.

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