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Property taxation is distortive.
Chancellor Philip Hammond’s announcement that the help to buy: mortgage guarantee scheme will close at the end of the year is welcome, according to Andrew Tyrie.
The House of Commons’ Treasury Committee had identified several problems with it, not least that it inflates house prices and creates a liability for the taxpayer. Mr Tyrie, chairman of the committee, said: ‘Property taxation is distortive. Taxpayer subsidies for home ownership increase demand and prices, and may do little to increase supply’
