Could deflation wreak havoc in the housing market?
If it's your pension, why is spending it out of the question?
Pure rent seeking...
Renting your way to poverty: welcome to the future of housing
A Dubious Policy
"The Treasury estimated that around 285,000 first-time buyers will use the scheme every year." Yet February saw barely 19,000 FTBs, and prices are dropping. These ever-more-convoluted Treasury tweaks are just a sign of the growing govt desperation, as they know just how bad the market really is. When the government has to resort to giving people free money to get 'on the ladder', you know the top is in.
More Government-subsidised Ponzinomics
But what if all weâre really doing â by accepting crazed property prices as the norm, to be alleviated only by the fiscal equivalent of chucking tenners into a crowd â is sucking first-time buyers into a sort of national Ponzi scheme? What if weâre luring them in at what would otherwise have been the peak, just to keep the boom rolling a little bit longer, and leaving them horribly exposed to negative equity if another crash comes?
Property bubble finally bursting?
Merryn Somerset Webb takes this apart quite nicely
Why don't they just take away the artificial props on housing and fewer people will have Â£1m+ homes?
Cognitive dissonance... It's a bad thing to aspire to own a nice house - large and rising stamp duty penalty. But existing owners are gifted council tax freezes and now the opportunity to pass their unearned gains. To their credit, the coalition introduced ATED so that offshore owned houses could no longer avoid IHT and CGT, but now they are going to exempt ones that are not enveloped offshore????