UK property tax cut won't stoke bubble: survey

London

GEORGE Osborne's tax cut for homebuyers isn't reviving concern about another property bubble.

That's according to Bloomberg's monthly survey, which showed two-thirds of 36 economists don't expect the move to increase the risk of overheating. Mr Osborne announced the decision to reduce transaction taxes on most homes on Dec 3, just five months before the UK general election.

The £800 million (S$1.64 billion) stamp-duty overhaul, which comes at a time the housing market is cooling, will add some support by giving buyers extra cash for their downpayment, though its impact may be limited by tougher mortgage rules. Governor Mark Carney will …