I was interested to read an interview with BBC Business Editor, Robert Peston, in the Times on Saturday 22 September 2012. He made a number of interesting points, some of which I agree with and some of which I don’t!
One point he made was that investigative journalists like him should have made more of a noise about the property boom and the bubble in house prices being created by government and bank policies. He went on to say that this should have been reported more loudly on the 10 o’clock news, for instance. I think there is a fine line between factual reporting and giving opinion – there is a myriad of experts who all have different economic forecasts and their opinions and views can vary hugely.
I did, however, agree with his point that more could have been done to control the property boom although I don’t think this was the responsibility of the Bank of England. But I do believe more could have been done by the UK Government to take the heat out of the property market. As I have mentioned in previous blogs, this could have been done by changes to the Capital Gains Tax rules and also Stamp Duty rules. Hopefully this is something that they will now consider as a means of controlling future bubbles and perhaps building up a first time buyer fund.Lindsay Darroch Partner & Head of Property