2 Year stamp duty holiday called for - Balls

chewmylegoff

Wookster wrote: »

Apparently Balls thinks it will "kick start" the economy. He is clearly deluded if he thinks something this minor will have a serious impact on the economy.



Have you seen Iron Sky? I shudder to think what balls might get up to there.

there is a significant amount of evidence that it will not kick start the economy, principally the fact that it has already been tried without any notable effect...

ManAtHome

chewmylegoff wrote: »

there is a significant amount of evidence that it will not kick start the economy, principally the fact that it has already been tried without any notable effect...

QE1..7 (or 8) didn't either - any bets on QE8 (or 9)..infinity?

moneyinmypocket

Get the banks lending again is key, those credit taps need to be turned onto max power - spend spend spend - I am almost giddy at the thought

michaels

chewmylegoff wrote: »

there is a significant amount of evidence that it will not kick start the economy, principally the fact that it has already been tried without any notable effect...

I wonder whether it could be a pre-emptive strike, perhaps the Tories were contemplting this - may be as a big conference announcement and this has now been proposed by Balls so that if they do it looks like they are takking labour ideas.

I agree with you though, I don't see how finding 1% stamp duty can be much of an issue compared to finding a 25% deposit...

brit1234

HAMISH_MCTAVISH wrote: »

Daft idea.

Stamp duty isn't the problem. Mortgage rationing is.

:rotfl:

Hamish you know the problem really is inflated prices.

Lending is fine if you have a deposit and regular income. Or do you mean returning to irresponsible lending to keep prices up?

The stamp duty thing is just a gimmick and not an issue for my first time buyer friends or myself.

Oh by the way Hamish you can increase the amount banks will lend by raising interest rates to encourage savers.

Graham_Devon

Balls did indicate this morning that prices "could be" an issue, and therefore, as part of this plan, 100,000 low cost homes would be built.

On questioning about these low cost homes (as they are never low cost!), he stated that this would be a shared equity scheme, provided by private builders, along with low cost rentals available to investors. Basically he was asked whether they would be much needed council homes or privately built homes.

He stated that it would be privately built shared equity programmes, as privately building them also privides jobs and growth.

I'm not sure if that means that building council homes doesn't provide the same jobs, but that appears to be the gaping hole he left for himself when describing the benefits of keeping them in the private sector.

Seems the "plan" is exactly the same as the coalitions plan. Shared equity and build for rent. But he stated their plan's will fail as they are not dealing with the "issue". Though didn't really state what the issue was.

Generali

HAMISH_MCTAVISH wrote: »

Daft idea.

Stamp duty isn't the problem. Mortgage rationing is.

I don't think it's a bad idea in itself: stamp duty is a ludicrous tax however it's not going to solve the problems in the house market in the UK.

wymondham

funny isnt it how all politicians tinker around the edges, without any apparent grasp of the problem ........

CLAPTON

what are the problems?

-reluctance of many people to buy due to uncertainty in their employment
-reluctance to buy because of the uncertainty as to whether the property prices will fall
-difficulty of raising deposit and money for buying costs including stamp duty
-diffciulty of getting mortgage finance.

In addition most of the government inititatives provide incentives for new buys.
However newbuys are burdened with lots of hidden taxes (like levies for local infrastructure and 'social ' housing) which dont apply to 'old' house.
As a consequence, new buy houses at the lower end of the price scale are unreasonably expensive compared to comparable older products. Basically adding 30-40k to a house costing £1million is easier to disguise that adding 30k to a 100,000 house.

I don't share the view that says lack of mortgage funds is the only problem.

FTBFun

chewmylegoff wrote: »

there is a significant amount of evidence that it will not kick start the economy, principally the fact that it has already been tried without any notable effect...

What - stopping a Nazi invasion from the moon? I'm confused.