Berkeley Share Discussion Threads

[gre] 03/12/2014 16:27

Sogoesit, I've amended my original post and agree with your calculations. I also agree that the people paying between £925,000 and £2,000,000 will be hardest hit by the changes. I wonder if the Treasury has really thought this out properly.

[sogoesit] 03/12/2014 16:13

Thanks for that gre. My calcs. in summary, were:
For a property at £1.45m: old SDLT = £72,500; new SDLT £88,750 thus an increment of 22.4%
For a property at £1.75m: old SDLT = £87,500; new SDLT = £123,750 thus an increment of 41.4%.
The new SDLT figures are banded. Have I erred otherwise?

I take your point that to a £1.75m or even £2m+ purchaser a £36,000 (in the above case) increase "may not be much" (at an overall price increase of 2%)... but I do think it will affect the profitability of "premium" housebuilders. All IMV.

As an aside, I just called a developer in London and asked if they would negotiate on prices due to the change in duty.... they said Yes.
Draw your own conclusions.

EDIT: For a £2.1m purchaser: old SDLT = £147,000; new SDLT = £165,750 an increment, as you say, of 12.75%.
Conclusion: the banding means that the middle £925,000 to £2m purchasers are hit the most.

[gre] 03/12/2014 15:35

Sogoesit, according to the Treasury someone buying a property for £2.1m will only face a 12.75% increase in stamp duty:

www.gov.uk/government/uploads/system/uploads/attachment_data/file/382324/Stamp_Duty_15.pdf

I really cannot believe that anyone paying over £2m for a house is going to be put off the purchase by an extra £18,750 in tax. It might hurt them in the pocket but people with that sort of money will hardly flinch!

[sogoesit] 03/12/2014 14:47

Looks like house-builders in the "premium" market will be hit, depending on "elasticity" of demand in propensity of purchasers.
A property priced at around £1.45m will see an increase of 20%+ in SDLT
A property priced at around £1.75m will see an increase of 45%; and
Properties below £925,000 will see savings (eg one at £700k would see an 11% saving).
All my calcs. DYOR

[philo124] 03/12/2014 13:48

Possibly, BVS shot up, but that maybe on Holdings RNS.

[doe808] 03/12/2014 13:47

Possibly the change to stamp duty?

[redrumtum] 03/12/2014 13:47

Mr Osborne is speaking.

[philo124] 03/12/2014 13:32

What happened?

[gargleblaster] 25/11/2014 06:41

Berkeley Group (BKG) releases interim figures on Friday, and the London focused house builder is expected to deliver another robust performance.

Investors will want to see how the group is progressing in crystalising the
Comment from IC

value locked up in the land bank, currently standing at over 11,000 units. Recent successes include securing planning consent for a site at London Dock in Wapping and one in Chiswick. The company has also raised nearly £100m through the disposal of its rental portfolio, further boosting cash flow. In fact, it now expects to remain ungeared even after paying the 90p per share dividend in September.

Berkeley has also joined forces with National Grid to develop National Grid's portfolio of undeveloped brownfield sites. Called St Williams Homes, the joint venture is expected to construct 14,000 homes in London and the South East.

IC View:
At 2,458p shares in Berkeley Group are up sharply from our long standing buy tip (1,691p 13 December 2012). Given the growth profile and attractive dividend, we remain buyers. Buy.

[r ball] 21/11/2014 19:42

welcome phil. I've been here since the £8.50 days. enjoy

[sogoesit] 21/11/2014 11:34

Property doing particularly well; PSN, WKP, INL amongst others.
Nice to see BKG catching-up with PSN again after being "oversold" on London prices, imv.

[philo124] 21/11/2014 10:02

Thanks. This morning's gains seem to be across FTSE 250/350 stocks.

[redips2] 21/11/2014 09:55

Welcome Phil :)

[chinese investor] 21/11/2014 09:45

Great Start !

[philo124] 17/11/2014 09:56

Bought for the first time here.

[r ball] 13/11/2014 19:03

maybe not too bad after all.

[redips2] 07/11/2014 10:13

Aye, a canny move me thinks .

[this_is_me] 07/11/2014 07:41

That looks like a good deal. Buying that amount of land outright would have been a huge investment.

[owenski] 23/10/2014 08:42

Future's still good for house builders imo

[richard98765] 23/10/2014 08:24

Demand for housing in London and South East will outway supply for a good 10yrs in my opinion. That can only bode well for Berk. Ill brave the storm on this one

[melody9999] 23/10/2014 08:19

foxt results causing the concern. i'm out and will watch for a while