The European commission decided to wade into the debate about housing prices in the UK by calling on the UK to raise taxes on higher value properties, build more houses and adjust the Help to Buy scheme.
In a review of UK economic policies, it said council tax bands should be re-valued and action taken to address “rapid” house price rises in London.
Politicians in the UK on all sides would have us believe that this is more interfering by our European overlords but I fear the warning may not be as malicious as it seems.
The EU has faced multiple property bubbles of their own, Spain, Greece and Italy to name a few, and have experience in both the causes of and the aftermath of a housing bubble.
The EU cannot take much more financial turmoil and sees the collapse of the UK housing market as potentially the last nail in it’s the coffin.
While the measures the EU suggest may stave off a collapse akin to that of 2008, they still will cause significant hardship for any unprepared mortgage owner.
There have been many warnings of increases of mortgage prisoners as soon as interest rates rise and record numbers of mortgage arrears as the housing market looses pace.
Maybe it wouldn’t be wise to rubbish away the warning of the EU.