Thursday, Dec 04, 2008
Where's yer hat.
Express: HANDS OFF OUR HOMES - THE KEY TO RECOVERY
SOME of Britain's top property experts reveal their key plans to kick-start the housing market...
THE TV HOMES GURU
Krustie Allstropp:
"I really wish that in the pre-Budget report Alistair Darling had done something dramatic for the property industry. Instead of reducing VAT by 2.5 per cent across the board, he should have removed it completely from certain key trades relating to property – on builders, electricians and plumbers, for example.
People don’t realise that the housing market is at the core of our economy – our houses are everything to us. We have 70 per cent home ownership in this country."
Posted by phdinbubbles @ 04:57 PM (496 views) Add Comment
7 Comments
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1. jonb said...
That won't help new builds because there is already no VAT on the cost of building them.
2. timmy t said...
Stupid bint. The fact that our housing market is at the core of our economy is the problem, not the fact that people don't realise it. Why can't she understand that you cannot build an economy on the basis of house prices continuing to rise? At some point, the house of cards will collapse.
3. little professor said...
4. fjcruiser said...
"We need people like MPs to go out and buy property and say: “I am prepared to invest my money in a UK property because I believe it is a solid and sound long-term investment.”
Good one Krusty.
5. mark wadsworth said...
What Timmy T says.
What I want to know is, what per cent of the voting age population is so stupid as to believe in this 'one sided' economics?
I'm a land value taxer, so any form of subsidy or preferential treatment for property owners is anathema to me. But I have been reminded dozens of times, politically it's a non-starter. Question is, should I give up now or should I have given up a minute after I started?
6. luckyjim said...
wadsworth
LVT is never going to happen is it ? But other, perhaps less ambitious ideas could turn into reality. If you can come up with a good idea which isn't so radical you might have a hope of making a difference.
The biggest problem we have at the moment is that the property market greatly favours the 'haves' over the 'have nots'. Even with these falling prices FTBs cannot benefit - because they cannot get mortgages. This leaves the way clear for BTLers to snap up cheap properties and rent them out to those would-be FTBs. Young people could be kept out of the housing market for years to come. Can you think of a way to fix this problem ? A tax or legislation that rebalances things in the favour of FTBs ? Not LVT - leave it behind.
One idea I had was that, if somebody rented a place long term, they should have a right to a share in the capital growth of the property. This would focus landlords minds on rental returns rather than speculating on capital growth. It would also mean that long term renters would not feel that they were missing out completely. There would not be so much pressure
to buy and therefore less upward pressure on prices.
Its fantasy-politics. Just a bit of fun. But again, if you did come up with a workable idea...
7. Mrb said...
"A steady, sustainable rise would have been a good thing but the Government put its hand in the pot when it allowed stamp duty to go up so high. My first flat cost me £72,000. I paid one per cent stamp duty on that: £720.
That flat was worth £325,000 a year ago. The person buying it had to pay three per cent: more than £9,000, half a decent deposit. "
Indeed Kirsty, the £8280 increase in stamp duty is prohibitive, not the £1/4 million increase in price.
Also Kirsty a £9000 deposit ("half a decent deposit") would mean a leverage of 36:1 on your flat. Hardly prudent.