Which planet is our Prime Minister on?

Posted on 3 September 2008 by Ray Boulger

4 comment(s)

When presenting yesterday’s package of measures to help home buyers and the housing market Gordon Brown talked about “Help with stamp duty.” This is a bit like a thief saying I am going to help you by not stealing any money from you!

He also said “Homeowners need to know that we will do everything we can to keep the housing market moving forward.” I think most people will be surprised to know our Prime Minister thinks the housing market is actually “moving forward” at the moment. I wonder which planet he has been on for the last year!

Furthermore, the use of the word “everything” is interesting. Perhaps the Prime Minister has re-written the English Dictionary but surely he must understand that, based on its normal definition, if the stamp duty tax had either been temporarily abolished completely or the threshold increased to a higher level than £175,000 that would have constituted doing more than what the Government has announced.

 

Categories: Property market, House and home, Miscellaneous

Graham B says:

Ray,

As a broker you will know there are plenty of mortgages out there. I work with a 22 year-old who has a deposit and mortgage offer. Unfortunately it will only buy half a house. Personally, I am waiting to buy but refuse to pay ridiculous prices.

Needless to say the problem is not to lend more. That's why we are in such a mess in the first place. The answer is for prices to fall dramatically, and they will. Once this has happened, the market will kick-start of its own accord.

What must be done then is to prevent this madness from happening again.

Regards,
Graham
Posted on 04/09/2008 22:13 by Graham B

Phil says:

You seem to have missed the point. The temporary suspension of stamp duty isn't intended to do anything now. In a year's time, we could be reaching the bottom of the market (25% to 30% drop?). The end of the suspension might produce a slight, temporary increase in sales, just before the next election. I still don't think it will do the Neo-Labs much good, though.
Posted on 04/09/2008 23:35 by Phil

Alan says:

There is little point worrying about what the Government will or will not do. The fundamental problem is that the price of property is far above the long term average. The market is an irresistible force.

I am waiting to buy and can get a mortgage, but there is no way I am getting involved at these levels. I'll be watching for a peak in repossesions with the average price back to 3 times average salary.
Posted on 04/09/2008 23:56 by Alan

luke says:

well well i have savings but iam not seekign to buy until the prices drop by 50%. if they dont i'll be leaving the uk and taking my skills with me.
Posted on 05/09/2008 00:26 by luke

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