Monday, September 1, 2008
Just let prices fall!
Why would you want to invest in half a house now when, if you wait for a year or two, you will be able to afford the whole house? Why should you want your taxes used to bail out feckless homeowners who borrowed too much during the boom? Why buy now and save 1per cent in stamp duty when house prices possibly still have a further 30 per cent to fall? None of the measures announced today will genuinely be in the interests of first-time buyers. In reality, they are a crude attempt to buy the votes of those who already own property and are sick at the diminishing value of their investments. If the Government were to replace the money that has been lost from the housing market, they would have to double income tax or close the NHS.