Property tax idea attacked

A proposal for a new housing tax by a Bank of England Monetary Policy Committee member has been rejected by an estate agent.

Adam Posen said there should be a tax that would increase when the market starts to heat up and be trimmed when downturns occur to avoid boom-and-bust situations, but this was dismissed as a “non-starter” by senior partner at Prickett & Ellis Nigel Ellis.

He said it was “the usual economist looking for easy answers”, adding that it is difficult to predict when markets will see upswings and crashes.

Mr Ellis stated that it is unlikely the Pre-Budget Report will see any new housing taxes as the government will seek to avoid any unpopular new policies with a general election approaching.

One property tax change that the chancellor Alistair Darling has been urged to implement is to extend the stamp duty holiday beyond December 31st.

Such a request was the subject of an early day motion in parliament sponsored by backbench Labour MP Lindsay Hoyle this week.

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