That is the stark warning from mortgage expert Peter Seymour , who says that people who have bought in the last two to three years could see the value of their properties fall.He says that the tax relief that homebuyers can claim is a strong factor in the decision to purchase.If it is scrapped or altered, demand in the housing market may fall and prices will go with them.
Mr Seymour says that house-buyers have already been hit by large increases in stamp duty this year.Finance and Economics are expected to announce soon how they will propose limiting mortgage tax relief – the last time they tried they were forced to back down in the face of a public outcry.Mr Seymour says they should think very carefully before proceeding again.’Any far-reaching proposals to cap or reduce interest relief is likely to have a detrimental effect on the market at all levels, with the possibility of negative equity occurring in many cases where properties have been acquired in the past two or three years,’ he says.Mr Seymour says with growing economic uncertainty and concerns over job security, now is not the time to be doing anything which may further damage confidence.’This begs the question as to whether it is the right climate in which to introduce any further restrictions on Jersey residents and tax proposals, if implemented, could possibly have the effect of driving away from the Island many professional staff not just in the private sector but also in the nursing and teaching professions upon whom the whole infrastructure of our society relies,’ he says.
