Brendan,
Undoubtedly this will be inflationary but my view is that the solutions to the housing crisis by their very nature need to increase house prices in the short term thereby increasing participants in the construction of housing. It is the governments job to ensure the number of participants competing to provide that housing isn't artificially constrained by slow planning, infrastructure, access to finance etc. The classic economist view is that increased suppliers will enter into the market compressing margins......nasty few years waiting for that to occur however.
The other pre-budget consideration I feel is the complete removal of VAT on new homes - perhaps for homes below 450,000e if you wanted to target.
What an insidious tax - one which forces the taxed to borrow to pay for it over 30yrs. Swelling the coffers of the banks, reducing household disposable income (and by extension purchasing power). Again one where the VAT reduction will go at first to swell the pockets of developers but as the fella said its never too late to do the right thing.
Undoubtedly this will be inflationary but my view is that the solutions to the housing crisis by their very nature need to increase house prices in the short term thereby increasing participants in the construction of housing. It is the governments job to ensure the number of participants competing to provide that housing isn't artificially constrained by slow planning, infrastructure, access to finance etc. The classic economist view is that increased suppliers will enter into the market compressing margins......nasty few years waiting for that to occur however.
The other pre-budget consideration I feel is the complete removal of VAT on new homes - perhaps for homes below 450,000e if you wanted to target.
What an insidious tax - one which forces the taxed to borrow to pay for it over 30yrs. Swelling the coffers of the banks, reducing household disposable income (and by extension purchasing power). Again one where the VAT reduction will go at first to swell the pockets of developers but as the fella said its never too late to do the right thing.