Farking Crazy

I see that the government, despite claiming that it wishes to simplify taxes, is planning to increase stamp duty on homes deemed to be energy inefficient.

I understand that at one stage the government had considered banning the sale of energy inefficient homes.

The new tax, which will most assuredly negatively impact the housing market, will theoretically come into force in 2012.

They must be farking mad!

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Mortgage Approvals Stall

Despite boast from the government that the budget's changes to stamp duty (for the next two years first-time buyers purchasing properties worth up to £250K will pay no stamp duty) will give the housing market and, by definition, the economy a much needed boost, reality does not match political spin.

Figures from the Bank of England show that mortgage approvals fell in February by just over 1,000 to 47,094, the third consecutive monthly fall.

This indicates that first time buyers are having trouble raising the loans necessary to buy their homes, it is unlikely that the stamp duty holiday will be enough to change that situation.

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Happy Budget Day

Today is budget day.

In keeping with "modern tradition", since Labour took office, budget "secrets" are now routinely leaked.

This year's budget will, according to the media, contain an announcement from Alistair Darling that stamp duty on properties will be scrapped on house purchases up to £250K for first-time buyers.

All very well, if they can borrow the money to buy the house.

Duty on strong ciders and alcopops will be increased significantly, in an attempt to reduce binge drinking by young people.

I am of the view that the economy and country would run much more effectively if politicians resisted the urge to tinker, meddle and change the rules quite so often.

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Pissing In The Ocean

The government, in a rather piss pathetic attempt to reanimate the corpse of the housing market, has announced that it will exempt properties worth less than £175,000 from stamp duty (the current exemption is £125K).

Given that the average house price in the UK is around £200K, this will have next to little effect.

Additionally, statistics show that the number of property deals that are already exempt from stamp duty has fallen almost as much as those liable for the tax; in other words the exemption is irrelevant.

The fundamental issue facing prospective house buyers is the lack of mortgage funding, not so much shaving a few thousand pounds off the price. This measure does not address the liquidity issue in any shape or form, it is pissing in the ocean.

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