It doesn’t need a mathematical genius to work out that this latest ‘tax bribe’ by Labour is not going to help the housing market.
There are few problems so bad that a government cannot make them ten times worse by intervening. The housing market is no exception. Much as it will cause pain to those who bought too late into the dream of home ownership, the only sensible policy is to stand back and let the market find its own level.
Source: Ross Clark Times Online
BBC’s Robert Peston has the best analysis… here
Here are some of the thoughts maybe going through people’s heads on this issue.
Stamp Duty. Ah yes. If I buy a house now I will make a saving of 1% in stamp duty. Hang on…If I wait a month I will save 2% in house price devaluation and if I wait a year up to 30% – so what’s the point?
Gazundering. Ah yes. This is what I’ll do. I’ll make a reasonable offer on this house. When it is accepted (and they will probably jump at it) I will proceed with the transaction until the day of exchanging contracts and then I will threaten to pull out unless they drop the price by 30%. Imagine the consternation!
Stop paying my mortgage. Ah yes. I think I will stop my direct debit to the building society (pay the money into a savings account) and see what happens. Maybe the government will bail me out. Worth a try.
Walk away. Ah yes. I think I will just go and live with Mum and Dad for a while and post these keys (and deeds) back to the bank (building society).
Burn the house down. Hmmm… I don’t think so. Forensics are pretty good these days. They might lock me up.
Comments
