Are the government helping or hindering home buyers?
The role of the government in the property industry is a very complicated and complex one. On the one hand, they have a duty to react to the growing housing crisis by trying to keep house prices at an affordable level while sanctioning the building of more new properties to meet demand. On the other, they also recognise that many of their core supporters rely on property for passive income or as a substitute for a private pension policy. To slow down house price growth can have long-lasting consequences elsewhere in the economy. So, it is a very delicate tightrope act they have to perform.
In the last year, they have moved to try and help first time buyers get on the ladder by removing stamp duty for properties worth up to £300,000. This has resulted in potential savings of thousands. However, in the period since the budget, even a small increase in house prices (which has happened in some areas) has already cancelled out these savings.
Polls show that almost half of the British public think that something should be done to bring property prices down and that there is strong opposition to continued house price growth. However, the research found that the results very much depended on whether or not people owned their own home. Homeowners were against intervention by about 51% to 35%, while non-owners favoured intervention by about 68% to 14%. There was marginally more support for attempts to bring down prices by a moderate amount.
However, when it came to prices going up even more, even homeowners were largely against the idea. Less than a quarter were in favour of further increases, with around 60% against.
Other intervention ideas, such as building new houses, proved to be more popular. Around 56% of all people asked were in favour of building new homes in their area, with far less discrepancy between homeowners and non-owners.
The role of the government in house pricing is very contentious and, despite the current administration’s general lean towards free market economics, most people now agree that something should be done. Exactly what that is, remains open for debate. However, the removal of stamp duty was definitely a move in the right direction.
If you’d like to know more about how the government is affecting house prices in and around the Norwich area, then get in touch with our team here at Agile.
To find out more about the local and national property market, or if you would like to chat about anything to do with property investment, give us a ring on Norwich 01603 567804 or send us a message.
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