Over the last two years there have been a number of highly successful and very expensive fiscal programs to induce growth into the UK economy. One such program was the stamp duty break which ended in December 2009 and which had a massive impact upon the UK property market. Such was the impact that many property purchases were rushed through in December to take advantage of the reduced costs and January mortgage lending figures collapsed by 49% compared to December.

While on one hand this shows the success of the UK government's fiscal policy for the sector it also shows that the property sector is still dependent upon government intervention. Whether the UK government will be brave enough to reintroduce the stamp duty break to support the property sector over the coming months remains to be seen but there is concern that the UK economy could weaken once other government led initiatives come to an end.

It is only now becoming evident how weak the UK economy has been and how dependent it was upon various support programs. The decision when to remove support for the UK economy was always going to be a gamble but ultimately it is a gamble which needs to be taken to allow the UK economy to stand on its own 2 feet once more.

»» Return to Homepage

»» Full Property News Archive

»» Property All over the UK