The stamp duty race to avoid a double false economy

This is Money Podcast

This is Money

Business News, Business, Investing, News

4.1 • 650 Ratings

🗓️ 25 June 2021

⏱️ 53 minutes

🔗️ Recording | iTunes | RSS

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Summary

Home buyers are engaged in a last minute race to beat the stamp duty deadline – with some facing a potential double false economy.

House prices have bounced over the past year meaning that the £15,000 maximum saving of a year ago would now come on a property that potentially costs £50,000 more.

That has led to claims of a false economy, but it would be doubly so for any buyer who then missed the deadline too and ended up with an extra £12,500 tax bill as they only get the tapered bit of the stamp duty holiday not the whole thing.

On this week’s podcast, Georgie Frost, Lee Boyce and Simon Lambert look at the last minute stamp duty rush and what might happen next to the property market, with Simon outlining that it’s not just a tax cut driving the pandemic boom.

At the other end of the property ladder, the team look at how to make sure you don’t end up paying off a mortgage in retirement and what you can do if you are approaching your pension years or in them with a home loan still to clear.

It’s likely that those borrowers could face higher rates than the rock bottom mortgage ones now too, but will rising inflation send interest rates up sooner than people think?

Meanwhile, what can a new £50 note and what happened to the value of the last one introduced in 1981 tell us about inflation? And why is continental Europe so much happier about taking big notes.

And finally, if you wanted to beat inflation you wouldn’t usually buy a nearly new car, but there are some now six-year-old motors out there that have held their value better than others and amazingly some that are worth more now than they were in 2018. We reveal which.

Transcript

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0:00.0	Welcome to This Is Money podcast. I'm Georgie Frost and alongside me and editor Simon Lammert today is
0:05.3	assistant editor, Lee Boyce. And coming up, the race is on to beat the stamp duty deadline and save up to 15 grand.
0:12.8	Are you losing the race, though, to pay off your mortgage before retirement? Does rising inflation
0:17.2	and rate rises cause a problem with all that, or is it just temporary and the 50 quid
0:21.8	note lesson in all of it? Plus, Simon failed to buy when shares dive 30%, but what does a fund
0:27.5	manager do when the market is crushing and how to swerve new car depreciation? Don't forget
0:33.7	you start up to date with all the latest breaking money news. Just go to this ismoney.co.uk.
0:37.8	Or download the app.
0:39.5	But first, with less than a week to go until the stamp duty holiday starts to taper,
0:44.5	buyers face a mad dash to complete or risk forking out an extra 15 grand to secure their home.
0:51.0	Thanks to delays in the conveyancing process,
0:53.3	some of those who had offers accepted
0:54.9	as early as February are still waiting. So what do you do if you can't get the deal over the line?
1:03.0	Lee, this is money you've spoken to some of the people who have been waiting since February.
1:08.2	Now, I thought this extension was supposed to clear that sort of backlog,
1:13.2	but it seems as well to create it a new one. We had this mad dash. We knew that this was coming,
1:18.0	didn't we? Yeah, but the thing is, Georgie, buying a house, uh, it can take such a long time and
1:23.1	it could be a lot of unforeseen things along the line that can delay the process and delay you
1:29.2	actually buying a home. So, you know, we were talking about this a few months ago. There was a 20-week
1:34.4	average weight to get all of the paperwork, all of the necessary wills in motion to get over the
1:40.5	line. But when I bought a house, it took me nine months. You know, it can take a very long
1:44.5	time to get in depending on your chain, depending on the circumstances of the rest of the buyers
	...

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