The number of properties sold in the middle to higher brackets have fallen by some 40% resulting in Stamp Duty, derived from sales above £1.5million from April to November last year, being down by £440million. How many hospitals and schools could this provide?
Isn’t it ironic, that the main plank of the former Chancellor Osborne’s fiscal discipline was to produce a Budget surplus in 2020, which has now been revised by Mr. Hammond, to approximately £20bn and 50% of this, according to the OBR, will be due to lower Stamp Duty Receipts; which was Osborne’s folly.
The love affair between the ‘great British public’ and the Residential Property Market is very enduring and whilst it has always been a prevalent feature of this country, Margaret Thatcher spearheaded the home owning revolution with her reforms and sales of council houses in the 80s.
Anyone who participated in buying their own home, for say £35,000 at the time, would now be looking at an asset value of circa £600,000. As a result, not only does a home provide a sanctuary for the family, but also could be a quasi pension for old age, should the property be sold and the owners downsize.
With the the Government’s White Paper now having been released lets take a look at some common sense solutions to this much-vexed subject which, after all, is a political ‘hot potato’ and a main plank of the Tory Manifesto.
In short, Cameron’s belief was in the ‘buying revolution’ and May’s, it appears, is in the ‘renting revolution’. Both served their own purpose and form an important part of affordable housing requirement which is so necessary to fulfil the social aspirations of a caring Conservative government with a left wing ‘twinge’, or any other government for that matter.