Sunday, Aug 10, 2008
Stamp duty holiday is called off.
The Observer: Darling backs away from stamp duty cut
Alistair Darling, is prepared to disappoint millions of would-be home buyers by ruling out proposals to revive the housing market, Treasury insiders warned last night. After a chaotic week of claim and counter-claim about Treasury plans to suspend stamp duty for first-time buyers, Darling has hardened his stance against the move, which he believes could cost billions to little positive effect.Vince Cable, the Liberal Democrat Treasury spokesman, said the stamp duty idea was ridiculous. 'What sort of a signal does it send when the government has to offer a bribe to get people to enter a declining market?' he asked.
Posted by mytimeisnigh @ 01:08 PM (977 views) Add Comment
10 Comments
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1. peter_2008 said...
My bet is that no matter what Darling does, buyers will still speculate and hold off and sellers will be devastated when it turns out that government (sensibly) won't interfere.
2. str 2007 said...
There won't be any give aways 'til they sense they could be near the bottom and the incentive will have some effect - end 2009 is my guess to try and level the market for the election.
In the meantime it's in their best election interest to help drive the inevitable fall as quickly as possible - without making it too obvious.
This was a good week for that, expect more.
3. nooneo said...
str 2007
If the population even sniff that the guv'mint are actually helping the market fall, the electorate will vote them out of office big style.
There is absolutley no way that this will bottom out in 2009. I guess we might be close in 2010 but more likelly 2011. This might ba a dangerous ploy to force the crash but it could mean the end of the Labour party if anyone ever gets eveidence that this is what they are doing.
Personally I think they have as much chance of being able to acheive any sort of recovery before may 2010 as Nick Clegg has of waking up one day and being Prime Minister!
4. enuii said...
Looks to me like the powers that be are ramping the market down as fast as possible, some rather weird articles in the Sunday Gutter press today that just don't add up if you have any semblance of intelligence (Sunday People in particular with it's garbled piece on energy prices and centre spread on broke folk). Bank of England comments on wage expectations follow nicely on from the Stamp Duty episode from the previous seven days as well.
No doubt ZaNuLabour must be hoping they can trot out 'Things Can Only Get Better' again as their theme tune for the next elections.
5. taffee said...
This market doesn't need ramping down..its at least 50% overpriced by any measure and the slump could last 10-15 years
6. mark said...
what is interesting the group that wrote the song "things can only get better" went bust shortly after labour used the song in their election....lol
7. Ulfar said...
So if they say they aren't going to make changes to stamp duty and then do very shortly afterwards, how much will that annoy people.
There is nothing Labour can do to stay in power short of declaring martial law and suspending elections.
The only reason they are clinging on is to bank as much money as possible for when they are in the dole queue.
Mr Brown's capability review will be very interesting.
8. str 2007 said...
nooneo
Oh I totally agree with you as to where the bottom is.
And I also think labour will make a hash of helping it down.
However I think it's their only hope and they must be thinking about it.
IMO they should come clean about the amount that is now available to borrow from banks & the effect it will have on prices ie 30% off. They should then offer direct government mortgages to make up shortfalls for families caught between old stile 6x mortgages and new style 3.5 times mortgages to help stop repossessions.
This would stop the banks using funds elsewhere.
And would correct the housing market quickly.
Yes it would cost alot in the short term but this is the position we're in.
In 10 years or so when prices are back to where thet are now the government 'direct shortfall' mortgages can be transferred back to the banks.
Adopting this policy IMO is Labours only solution.
And I think I'd rather see Nick Clegg and Vince Cable in than 'a bit too smug Cameron & Co'. Who lets face have already crashed the housing market once - time for real change me thinks.
9. wiltshire said...
I honestly don't think Labour can save the day now and they know it. Two or three years ago was the point at which they needed to cool down the economy but they bottled it. They're just tinkering around the edges now and the reason they can't make any decisive decisions is because they know it will make sod all difference and certainly won't aid them at the next election. There is no way in the world this market can be crashed and bouncing back in 18 months. Look at the graph on the home page of this site, I bet you the next trough will be as deep as the last one and twice as long.
Another thing to bear in mind is that there is a majority in this country who want a return to sane house prices along with huge numbers of savers. If Labour do too much to save the financially incompetant they'll have to suffer the wraith of the financially astute.
10. nooneo said...
str 2007
I'd rather Dame Edna Everadge than the two main choices but i'd rather see Vince Cable than Nick Clegg, but we can't have everything can we (like an affordable home!) can we !