Friday, May 20, 2011
Food For Thought – Is It Bear Food?
Report sets out reforms of housing market
The report admits that curtailing mortgage credit would be controversial, but says that credit controls such as restricting maximum loan to value ratios would have an effective direct impact on the housing market and reduce volatility. It also calls for a reform of stamp duty, so that higher rates are only applied once thresholds have been passed on the ‘extra’, and not on the entire value of the property. It suggests that council tax should be replaced by a new national property tax...
Posted by rantnrave @ 09:25 AM (1427 views)
5 thoughts on “Food For Thought – Is It Bear Food?”
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mark wadsworth says:
Apparently we can’t have a “national property tax” because it’s impossible to value houses, because value would be destroyed, pensioners would be forced into the streets, and neither rich people in big houses nor poor people in small houses would be able to afford it and we’d all be homeless on the street, gazing sadly at the boarded up windows of all the houses which some evil corporation has snapped up for a pittance and refuses to rent out to us (having avoided the tax by registering in the name of and offshore company) and all the young and healthy people and entrepreneurs would move abroad, like to Switzerland, where, interestingly, they also have a “national property tax”.
Or so I’m told, anyway. Not doubt the EAT comments will be a rich seam of suchlike guff.
will says:
Rowntree have come out with some good points. The problem is that the UK property market has detached it’s self from all fundamentals, actual asking prices bare no relationship to the bank indexes at all. Most part of the UK have yet to acknowledge any price falls since the peak. Individual regions believe that they are ‘different’. I believe that raising interest rates will sort out the chaff from the wheat.
sibley's b'stard child says:
Will, I had a reasonable scan through the RF website and although they genuinely seem to be an altruistic mob I was concerned by one of their key points that part-buy/part-rent schemes should be widened beyond helping those on the fringe but to make a mortgage more serviceable over a person’s lifetime (or words not too far from that). That stuck out for me, that and also that their ‘task force’ is comprised of at least one ‘affordable home’ purveyor. Other than that, I thought its suggestion of simply building more council stock smacked of common sense.
sibley's b'stard child says:
Addendum, another concerning idea floated as to financing further social housing construction was the use of PFI, which i’ve only ever heard good things of.
mark wadsworth says:
SBC, part-buy, part-rent schemes are a fantastic idea, if done properly, i.e. you buy the building (or your share of the building) and rent the land off the council. It’s LVT by the back door.