Monday, February 29, 2016
Housing Market in the United Kingdom
“Housing markets have decelerated somewhat since mid-2014, but significant pressures remain. (…) Persistent upward pressure on house prices partly reflects supply constraints. (…) High house prices result in some households taking on high leverage, posing financial stability risks. (…) Further macroprudential tightening may thus be needed if the reduction in high leverage mortgages does not continue”, says the IMF’s new report on the United Kingdom.
A separate IMF paper examines how tax reforms could help ease structural supply constraints in the UK’s housing market. “Property taxation in the UK delivers larger revenue as a percent of GDP than any other OECD country. (…) However, a closer look at the UK’s property tax system suggests that some areas could be reformed to reduce constraints on housing supply and thereby reduce risks stemming from high house prices. In particular, deducing council tax discounts [and (…)] reducing reliance on the stamp duty land tax.”
Posted by at 10:00 AM
Labels: Global Housing Watch
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