Debate Magazine

Home-Owner-Ist Understands Economics - Shock

Posted on the 21 September 2022 by Markwadsworth @Mark_Wadsworth

From The Evening Standard:
But while home buyers may welcome a potential stamp duty cut, it could also lead to them paying bigger monthly mortgage bills, a finance expert has warned.

Sarah Coles, a senior personal finance analyst at Hargreaves Lansdown, said potential cuts to stamp duty may risk “doing more harm than good”. She said stimulating housing market demand could push house prices up further, at a time when the supply of available homes is already tight. Borrowers could then find themselves paying higher monthly mortgage costs if the price they have had to pay for their home has increased.

Correct. Reducing taxation on land and buildings mainly benefits the vendor, not the purchaser. I'm just surprised to see this reported in that bastion of Home-Owner-Ism - a huge chunk of their income is from property porn adverts, so they have to toe the line.

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