Saturday, May 12, 2007
House crisis due to stamp duty
BBC news (video): House crisis due to stamp duty
A spokesman for the Council of Mortgage Lenders and Kirsty Alsopp blame the government for high house prices. Kirsty actually says "... one of the things that fuelled this terrible shooting up of house prices is lack of availability" [supposedly due to high stamp duty].
Posted by scunnered @ 09:03 AM (689 views) Add Comment
11 Comments
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1. magnifico said...
You gotta love old Krusty.
Her chubby face was on the morning news blaming the Government for not knocking off taxes on smaller properties. Why is that... would it be because it'll make easier and more profitable for improvised BTLers to jump on the bandwagon and keep the momentum going a bit longer?
2. paul said...
Oh the housing market shills really should decide.
If its supply and demand, raising interest rates shouldn't bother them. If it's cheap credit, then it's nothing to do with cheap credit.
3. paul said...
No, I mean if it's cheap credit it's nothing to do with supply and demand.
Doh. Sorry.
4. sovietuk said...
"House crisis due to stamp duty" ???????? Might have guessed - could only be a BBC headline
5. nearly30 said...
We have hit crisis - but the whole who's to blame argument is annoying - it's lax lending and a culture where if you have credit/equity you can get credit in order to buy-to-let. Which is a bonus for those that can do it as pensions are pants - which must come down to good olde Gordon Brown.
As an aside - is also a bit of a 'right to buy' [or at least own] attitude - which is admirable as it reflects a sense of ownership, investment, personal responibility etc etc...
6. Heidivail@waitrose. Com said...
Who is to blame for excessive house prices? In my country of birth (Germany) you would need a substantial deposit (25-30%) to buy a property. Because of this, only approx. 25%-30% of the polpulation can afford to buy and most of the people over there are happy to rent as they feel having more flexibility this way. UK house prices are, in my opinion, kept artificially high due to irresponsible lending and lack of a substantial deposit required. . A good example are the interest only mortgages as those "mortgages" mean that a property is really not affordable. Germany also has a stamp duty of 3,5% and house prices haven't really gone up much in the last 20 years. I also feel that the valuations should not be done by estate agents but by an independent surveyor, who will value the property not only according to location but also according to the amount of living space (square metre/feet) rather than the number of bedrooms.
7. confused76 said...
Affordability is the problem? then house prices have to come down... increase interest rates and build more houses...
but blaming taxes is stupidity,
like the old lady saying that her mortgage interest payments were tax deductable...
as soon as you introduce incentives these are going to be taken into the price (ie increase price even further)
8. confused76 said...
Affordability is the problem? then house prices have to come down... increase interest rates and build more houses...
but blaming taxes is stupidity,
like the old lady saying that her mortgage interest payments were tax deductable...
as soon as you introduce incentives these are going to be taken into the price (ie increase price even further)
9. Scott said...
A few weeks ago, the question was "Will the crash happen"? Now the question is "Who is to blame"?
10. Sosoon said...
Have just watched Grand Design on Channel 4, this guy built his own log cabin (big House) Very very nice. Close to the end, the summing up part of the program the presenter asked how much the project cost. He said 120K and discussed this included all the finishing’s. Of course no mention of stamp duty; and I would assume no VAT either. I now believe my house is worth next to nothing, in relative terms. Long live stupidity; at least till sell up. PS you can watch Channel 4 programs again on there broadband (On Demand) service
11. Woodyman said...
I thought it was such a ridiculous story I emailed the following in to BBC breakfast....Stamp duty has nothing to do with HPI.
House prices will continue to rise exponentially as long as the FSA fail to enforce their own rule of 'responsible' lending. 6 or 7 times income can never be classed as affordable or responsible.
The MPC are also responsible, letting the inflation rate go to 3.1% has been a huge error on their part. They need to do a more pro-active 'half percent' rise in interest rates.