Wednesday, March 24, 2010
Budget incentive for 1st time buyers - but is it responsible governing
The online world is going mad at the moment as the budget speech is picked over sentence by sentence and then re-tweeted around the globe.
The general consensus among the great and the good of the property industry is that the doubling of the stamp duty threshold to £250,000 is a grand move and will help kick start the market - with the introduction of many first time buyers.
Excellent, that's agreed then.
Yet, there's something nagging away at me that says there is far more pain to come in the UK property market and that this feeding of the property flame is not necessarily what a responsible government should be doing.
This illuminating little piece in the Wall Street Journal perfectly illustrates the pain currently being felt in the US real estate market. These are real people with real debts, right now. I'd urge you to read it through and then think about how a similar scenario could unfold in the UK.
Goodness knows I'm no economist but I do have this little chap on my shoulder who's whispering in my ear that this could all end in tears for those who can least afford it...those just setting out on their adult lives.