At the top end of the market changes to stamp duty, holding property in offshore companies and rules to make sure capital gains tax are all in themselves welcome and to he applauded.
Likewise increasing the stamp duty rate on buy to let property from April this year to dampen speculative activity makes sense.
And reducing tax relief on interest paid on buy to let property loans to the basic rate of income tax also makes a lot of sense: there is an iniquity that owner buyers get no such relief.
So each measure is welcome. It’s just the timing. The buy-to-let market was already overheated. And now there is feverish activity to close deals before the new stamp duty deadline comes in. Will that be a market peak? The Nationwide data suggests it might be. That current peak looks unstable to me.
And will the interest deduction rules then give rise to an off loading of propery? They might.
And there is at the very least a recessionary environment in the UK right now. In which case these tax law changes, right as they are, look like they will go down as a contributory factor if the housing bubble bursts.
So, Osborne does everything that Ritchie demands and supports and only now Ritchie springs the surprise that this might cause a recession?
He’s a helluva macroeconomist, isn’t he?