Rocket science?

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Sunday 3 June 2012 11.55am
According to the 'Sunday Times' today, the Bank of England is poised to inject another 25 billion in quantitative easing. I don't know how many tens of billions have already been pumped in to boost the flagging economy, with seemingly little or no success, but perhaps the Chancellor might like to consider the following.
The housing market has long been considered a barometer of the economy. Get the housing market moving and the rest will follow. When someone sells their home it is usually through an estate agent, so there's the first benefactor. A solicitor, or conveyancing firm will be employed to handle the sale and, if applicable, the accompanying purchase. A mortgage will probably be required, so banks and building societies will enter the mix. Then there's work for the surveyor and the removal company. Quite often, white goods will be purchased: fridges, freezers, etc. Carpets, paint and D.I.Y. materials also. Not only do the retailers get a slice of the action, it would be a boost to the manufacturing industry also. In some cases local builders will be hired to carry out alterations, extensions and so on. Maybe painters and decorators also.
This will be happening not with just one property, but all the buyers and sellers up and down the chain, which can be as long or as short as a piece of string.
If you want to get the economy moving, Mr Chancellor, then suspend stamp duty for, say, six months, or at least cap it to one percent for properties up to 1 million. Not just for first time buyers as before, but for everyone. Unless they're buying a new-build, a first time buyer can only buy a property if someone else intends to move out of it. You don't get much for 250k these days, but spend a penny over that and you get stung with three percent stamp duty on the whole amount. I want to move closer to my extended family, but the 285k properties I've been looking at would cost me 8550 in stamp duty alone, plus all the other fees and expenses involved in moving. Having moved twice already in the last eight years and handed over in excess of fifteen grand in stamp duty to the government for doing sweet s*d all, (apart from ringing the till,) I'm reluctant to do it again.
Do away with stamp duty and get the country moving!
(I'll be first in the queue.)
It's not rocket science, and it worked in 1992.
Saturday 9 June 2012 10.13am
Just wondered on reading your post chalkey what the relationship is, (if there is one?) between home ownership and the prosperity of a country.
Can we draw any conclusions from the Wikipedia table:
percenatge of home ownership per country. Germany having the lowest ownership would suggest it's not that important.
Saturday 9 June 2012 10.54am
Hi, Phoney.
The figures quoted in your link disguise one important fact. Home ownership in the more prosperous countries in Europe is low because it is a less common situation. Having worked with many Europeans over the years, (mostly Swiss, French and German,) I learned from them that renting is far more common in Europe than home ownership. More of a tradition in fact, and always has been. There is, no doubt, a root reason for this going back centuries, but I'm sure it's never been anything to do with the prosperity of the country. The link bears that out.
Our 'An Englishman's home is his castle' mentality is not a part of the European psyche. I guess they are not as insecure as us.
My original point was not that home ownership, per se, reflects a nation's prosperity, merely that so many trades and professions benefit from a house sale and this can only be good for the economy.
If I'm wrong in all this, I'm sure I will be corrected and that's a good thing. It's what the 'Chatter' page is all about.
Saturday 9 June 2012 12.07pm
chalkey wrote:
If you want to get the economy moving, Mr Chancellor, then suspend stamp duty for, say, six months, or at least cap it to one percent for properties up to 1 million...
Do away with stamp duty and get the country moving!
(I'll be first in the queue.)
It's not rocket science, and it worked in 1992.

If you want to get the attention of the Chancellor with your suggestion, why not write to him?
Saturday 9 June 2012 12.59pm
I sometimes like to:
1/ get an issue off my chest.
2/ Invite (or provoke,)a response.
3/ Learn from those responses.

So far, two out of three ain't bad.

If the Chancellor of the Exchequer isn't already aware of the benefits of a healthy property market, then he shouldn't be in the job. If he is aware, (and I'm sure he is,) then his reason for not relenting on stamp duty is simply that it's too lucrative a tax in it's present form. But, by easing it even a little, more people would enter the property market, therefore, more people would be pay stamp duty, but at a lesser rate. I doubt if the net result would be greatly different in terms of revenue.
To leap from one per cent to three per cent on properties over 250K is a mighty stumbling block for anyone contemplating a move. It's not much cop for a vendor who has a house that is genuinely worth 260K, but can't get an offer over 250k because being hit with the three per cent stamp duty would cost the buyer an extra 5,200.
I haven't got my finger on the pulse of property prices around the country, but I do know that some of the old two-bedroom council flats my mates lived in back in the 1960's, have changed hands recently for 225,000. So you don't get much before you get hit with the three per cent.
As much as I'm enjoying this little banter, the horse racing on the telly starts soon. So I'm orf aht of it!

(Watch out for, 'Memory Cloth,' in the 3.10 at Chester!)
Saturday 9 June 2012 2.59pm
chalkey wrote:
(Watch out for, 'Memory Cloth,' in the 3.10 at Chester!)

Glad I only edited an old betting slip chalkey. Second last!

Saturday 9 June 2012 4.14pm
Keep watching, Phoney. He's due in any minute!

I'm flattered that you'd speculate a grand on the whisper of someone who couldn't tip dung out of a bucket, and only ten quid on your own fancies. LOL!
Good luck on the footy. I've bought first half goals myself, in singles and doubles. So there's a tip for you....SELL-SELL-SELL!!!!!!!!!!!!!

By the way, if they re-release 'The Great Escape,' I wouldn't bother auditioning for the part of Colin, the master forger!

I'm hoping to get a little bit back on 'Brazen' in the 4.35 at Newmarket. (Soft-ground sire, stable in form.)

Come on, Frankie!!
Saturday 9 June 2012 5.05pm
Oh well. Some days are diamonds, some days are stones.
Anyone got a length of rope and a chair with a dodgy leg?
Saturday 9 June 2012 7.38pm
Denmark 1-0 at 12/1. Result! Just need one more now.

Sorry for straying off topic chalkey
Saturday 9 June 2012 8.06pm
Good call, Phoney. Result indeed. Good luck with the rest.
Thank God straying off topic isn't a hanging offence. My neck would be three yards long by now!
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