15% FALL IN HOUSE PRICES EXPECTED
The SNP today slammed Labour’s plans for a property poll tax as a danger to Scotland’s housing market.
Research from the previous administration’s review of Local Government Finance estimated that “the reintroduction of a local property tax could reduce house prices in the long run perhaps by 15% on average."
A 15% fall in values would wipe nearly £22,000 (£21832.95) off the average house price in Scotland.
Labour’s plan to hit Scottish households and wreck Scotland’s housing market comes only days after figures from the Royal Institute of Chartered Surveyors showed house prices in Scotland may be beginning to recover with a majority of surveyors now expecting the market to improve and mortgage surveys showing the market appears to be stabilising.
SNP MSP and Chief Whip Brian Adam said;
“Labour is taking a wrecking ball to Scotland’s housing market.
“Not content with increasing household tax bills by nearly £500 and taxing people for home improvements Labour now want to cut the value of people’s homes by 15%.
“When Scotland’s housing market is showing signs of recovery this is the wrong policy at the wrong time. Labour’s tax plans are simply irresponsible.
“Any homeowner will want to make improvements to their property, so why should they be penalised? For many people homes are investments in their children’s future. Now Labour wants to take £22,000 off their investment.
“If these plans were ever to be implemented we would see pensioners facing enormous bills and losing money on their homes.
“And with the prospect of regular revaluations this situation would only get worse.
“Labour’s irresponsible proposals are a threat to household budgets and a threat to the housing market in the middle of the recession. This is midsummer madness from Iain Gray and Andy Kerr that will horrify people across Scotland.”