EC Calls On UK To Raise Expensive Homes Taxes

The European Commission has urged the United Kingdom to increase inputs on expensive properties, build more houses and adjust the Help to Buy scheme,as part of recommendations the institution offesr each year to members to help ensure long-term growth.

Prioritising capital spending was also among the Europeans body's recommendations. It also described Britain's council tax system as "regressive," due to its being relatively high on lower value properties.

The Treasury said the UK as one of the fastest growing economies would listen to the commission with interest, while the government said the commission's recommendations were "in line" with its own approach.

Although the Help to Buy scheme is designed to facilitate people to get on the housing market, the commission said: "Action is needed to further boost the supply of houses - by creating appropriate incentives to raise supply at the local level.

"The authorities should continue to monitor house prices and mortgage indebtedness and stand ready to deploy appropriate measures, including adjusting the Help to Buy 2 scheme, if deemed necessary."

A Treasury spokesman said: "Figures last week showed Help to Buy has helped thousands of first time buyers on steady incomes buy properties and finally realise the dream of home ownership. It's an aspirational policy that will remain a key part of our economic plan."

(CVS)