Comments on: Property tax: dynamite fuse is lit by Bank of England man

By: Phil Hull

Phil Hull — Tue, 08 Dec 2009 12:46:37 +0000

This becomes, once again, the argument between control economics as preached by our current PM and a pure laissez faire approach epitomised by the Thatcher government. The fundamental problem with tinkering with the laws of supply and demand is that something will happen to re-balance the market whether by accident or design. In my view it is much better to let the market dictate and in the property market that means sensible LTVs, sensible interest rates and proper financial underwriting.

By: Richard

Richard — Fri, 04 Dec 2009 13:24:16 +0000

So Mr Posen wants to introduce a tax whenever supply and demand is not in balance.
Never mind this is more often than not because of politicians ineptitude and their desire to control our lives. Gordon Brown will love him.
Me I say ease up on the over regulation and supply and demand will be in balance which will result in house pricing increasing at a rate more commensurate with inflation. In other words get the politicians out.