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The Bank of England’s Monetary Policy Committee yesterday voted to maintain the official Bank Rate at 0.5%.

Steve Lees, Marketing Director of SmartNewHomes.com said:
 

The national affordable housing campaign, PricedOut, has expressed deep disappointment at the announced measures on Capital Gains Tax.

PricedOut Spokeperson Katy John said:

The Chancellor of the Exchequer’s announcement that VAT will rise to 20 percent in January 2011 will boost the black economy and cowboy builders as consumers resort to ‘cash-in-hand’ to avoid paying VAT on building work, warns the Federation of Master Builders (FMB).

Richard Diment, Director General of the FMB said:

Property experts have welcomed changes introduced by the Chancellor George Osborne in yesterday's Emergency Budget in an attempt to tackle Britains deficit.

In a statement released shortly after the news that higher-rate taxpayers will now be charged CGT on the disposal of non-business assets at 28%, rather than the 18% previously levied Stuart Law, Chief Executive of Assetz said:

The Chancellor of the Exchequer George Osborne has set out his Budget with a five-year plan to rebuild the British economy.

The plan designed to tackle the unprecedented budget deficit is to introduce a fairer tax system, encourage enterprise and support long-term growth across the economy.

Expected measures affecting council tax and new rates of Capital Gains Tax are to be introduced albeit at levels lower than predicted.

The Institute of Directors believes over 200,000 ordinary taxpayers vital to business investment and economic growth will be hit by the proposed Capital Gains Tax (CGT) rise.

The organisation says given the poor state of the economy this makes the need for measures to reduce the impact on businesses and long-term investment all the greater.  It suggests a generous taper relief would be an obvious solution.

The prospect of a hike in Capital Gains Tax (CGT) has produced a rush of property owners hoping to sell up before the changes come into effect reports Simply Business.

According to figures from estate agent Hamptons International, new instructions to sell increased by 32 per cent during April. Agreed sales increased by 15 per cent, despite continuing concerns about employment prospects.

The coalition government’s proposal to increase Capital Gains Tax (CGT) on the sale of second homes from 18% to a predicted 40% has been applauded by one company.

County Homesearch believes the introduction of a higher rate of CGT will provide a shot in the arm for the property market, as second home owners who rarely use their properties put them onto the market in anticipation of the new tax.

"The British election has been a shambles" according to Douglas McWilliams Chief Executive of the centre for economics and business research.

In his latest release Mr McWilliams goes on to write:

"Queues of people unable to vote because the local authorities had failed to put in enough staff to run an election (even though the turnout was only 65%) and a result that virtually guarantees weak government, a Prime Minister who despite a decisive rejection from the voters seems determined at time of writing to hang on in Downing Street (Mugabe style!?!)….emerging economies who invite British monitors to oversee their electionsare likely to have a wry laugh at our expense.

The new East London rail route will provide a major housing market boost that transcends the age-old north/south divide in the capital.

The long-awaited £1billion extension of the old East London Line opens up a brand new overground route between Dalston Junction in the north and West Croydon to the south of the capital, offering swift central London access from both sides of the river Thames.