Election proposals of the labour party defeated the experts

The labour party UK has announced its plan to reform the construction industry and the residential real estate sector.

The basic ideas that underpin the labour party, will be the increased control of the sector of the rent and the introduction of exemptions from stamp tax for those buyers in the UK who first buys a house. The leader of the labour party ed Miliband said that the need to release these buyers from Stamp duty when buying property up to £300,000 pounds and at the same time impose higher tax rates to foreign buyers. “Local first” is the slogan of the labour party, the meaning of which is that it is necessary to provide housing for its citizens, and then to attract overseas buyers.

According to preliminary estimates of the labour party, the benefits of such reforms Stamp duty will be able to obtain each 9 and s 10 of property buyers in the UK – British, first time buying a house and each of them will be able to save around £5000 pounds. Funds that will receive less budget, Mr Miliband expects to bring those landlords who evade taxes. According to the tax authorities, about £550 million a year loses budget nedopoluchit taxes from absentee homeowners. Miliband proposes to create a single register of landlords, which will allow to replenish the budget additional funds, as well as to deny tax exemptions to those property owners who own expensive property.

In the field of rental housing and the labour party propose to ban landlords to increase the rent for the first three years and to require real estate agencies to disclose information about previous and similar transactions. In the opinion of the labour party, it will help to create stable and decent real estate market, where the benefits to both the landlord and tenants.

Meanwhile, the position of the labour party on housing is subjected to considerable criticism on the part of professional market participants.

Jeremy Blackburn, head of policy at the Royal Institute of Chartered surveyors, believes that, perhaps, the abolition of Stamp duty and ease the fate of many buyers in the lower segment of the market, but this is not the main problem facing the industry. We are sorely lacking a new property and it is not clear how labour are going to build 1 million new apartments and houses required in the UK by 2020. The most urgent task is to increase the supply in a market where demand exceeds supply. Providing the UK property market in affordable housing – more important way to solve the housing problem than the decline in Stamp duty.

Michael Hayward, Director of the national Association of real estate agencies welcomed the reduction in stamp duty for first-time buys a house, but at the same time pointed out that stamp duty is the main obstacle for these buyers, and the need to make a down payment for mortgage lending, which is particularly high in London and the South East of England.

Naomi Heaton, CEO of London office, believes that the law of labour will help buyers to save only £242 pound Stamp duty. “Labour are obvious problems with math and so we’re very concerned about their ability to manage the economy of the country.” According to the Bank Halifax, the main buyers outside of London, for the first time buying a house, acquire a property in an average of £137120 pounds. Stamp duty for the purchase of such sum will amount to £242 pounds, but not £5000. Even if included in the calculation of London, the average purchase in the UK will cost £171000, and stamp duty for such purchases will be £937, which is also not £5000, which announce the labour party.

In addition, according to Naomi, in the proposed labour schemes are measures of artificial stimulation of the market that it can exert upward pressure on prices and aggravate the position of the buyers. “Only a solution with the supply of housing can lead to better balance of supply and demand,” said Naomi.

Richard Lambert, Executive Director of the National Association of Landlords, said that the labour party not understand the economy of the “private housing market” and therefore their seemingly good intentions , can have negative effects for the market. Thus, undue pressure on landlords could lead to the fact that the market rent will be frozen for many homeowners, unable to raise rents, will suffer losses and be forced to leave the market. Threatened a new program of assistance to pensioners. The labour party needs to understand that dominate the market not a Scam, but law-abiding homeowners. The rent increase is the impetus that drives the real estate market and construction industry, and therefore, is a natural and vital process.

® Alice Morgan 28/04/2015

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