“DeltaContinental”– Osborne’s Budget Outlines Austerity…

FOR IMMEDIATE RELEASE
(Free-Press-Release.com) June 28, 2010 -- “DeltaContinental” analysts’ belief that a rush to dump property on the UK property market could be averted if the Chancellor of the Exchequer, George Osborne, imposed an increase in Capital Gains Tax (CGT) with immediate effect is apparently shared at 11 Downing Street.

Mr. Osborne raised the rate of CGT to 28% from 18% with immediate effect as part of a raft of measures targeted at reducing the UK’s budget deficit.

“DeltaContinental” said that the decision would prevent a deluge of property like 2nd homes and buy-to-let inventory hitting the market all at once which it was feared could turn the expected orderly resumption of property price falls into a disorderly rout.

Nevertheless, the firm is adamant that the UK property has a bleak short to medium term outlook given the dearth of credit, strict lending criteria and consumer reluctance to take on debt in light of worries over job security.

Indeed, “DeltaContinental” suggested that clients should continue to ignore the lamentations of various vested interests doing their utmost to talk up a property market that remains over-priced in relation to average earnings.

The Chancellor’s Budget address outlined a number of additional measures including an increase in the sales tax (VAT) to 20% from 17.5%, a freeze on public sector pay for those earning over £21,000 per year and a freeze on child benefit for three years.

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