Before last May’s Holyrood election, the Scotsman reported that the founder of Standard Life Bank and Intelligent Finance, Jim Spowart (right) had warned of possible consequences for homeowners were Scotland to separate from the rest of Britain. Here’s an excerpt: Mr Spowart said house prices in Scotland could fall, homeowners could be hit by different interest rates from England, and Scots would have access to a more restricted mortgage market.Obviously the Nationalists reacted by claiming that Spowart’s comments were “absurd” and that he was “scaremongering”. That seems to be their default form of criticism for any potentially unpalatable truth.
But today’s Scotsman reports SNP housing minister Stewart Maxwell (left) saying: “I would encourage banks to offer separate products for Scotland”.In this instance, Maxwell is calling for banks to “treat Scottish customers more favourably than their English counterparts”, according to the report. His pretext for encouraging resentment in England is that the credit crunch has thus far bitten somewhat less deeply in Scotland than in various other parts of the UK, a notion which if taken to its logical conclusion would result in different products being offered in different cities, neighbourhoods or even different streets!
Another interesting tidbit from the article is that apparently Mr Maxwell thinks that house prices in Scotland are still “buoyant”, which given that prices are actually down about 2% on the most recent quarter and that volumes have fallen 27% over the past three months, might suggest to some that he isn’t quite in control of this aspect of his brief.
But aside from that, I was wondering whether or not, had Scotland actually been affected more than England, Mr Maxwell would have called for the English to receive special consideration. Somehow, I don’t think so! Under such circumstances, the Nationalists would undoubtedly have complained about the raw deal which they would have us believe Scotland receives within the United Kingdom, and having stoked resentment in Scotland, felt that their work was done.
1. Scotland has a significantly more robust housing market than the rest of the UK due to the unique system.
2. The average Scottish house price has risen 5% in the past year. Across England and Wales it has fallen 10%.
3. The average earnings of Scottish citizens is below that of the rest of the UK so find it difficult to find initial house deposits.
4. Economist pointing out that Scotland is a 'low risk investment' for banks to invest capital during a bear market is not discrimination, its business sense.
You point out that a notion which if taken to its logical conclusion would result in different products being offered in different cities, neighbourhoods or even different streets!
This is already the norm! You clearly know very little about finance or indeed mortgages! Do you own a house?
Well done for using the proper form of "tidbit" and not the more common (and wrong) "titbit".
Also, you're dead right about Stewart's comments. But that's the problem with nationalism, particularly the Scottish form: you start by saying Scotland should have different rules and end by saying different cities/communties/streets should have different rules. Freedom for Shetland, anyone?
BSH
I don't accept your reasoning, but let's suppose for a moment that I did.
So do you think that Scotland should have been excluded from the stamp duty holiday announced today? After all, the move was intended to stimulate a market which - according to you - is actually fairly robust!
Scotland was exempted from the 30% interest-free shared equity scheme ("HomeBuy Direct") also launched today - but only in England.
So, to rephrase your article title... "Labour minister achieves positive discrimination for English".
Yes, I saw that. Obviously Stewart Maxwell, if his "logic" is consistent, would support it.
Or would he object to on the basis that Scotland is being treated "unfairly"?
Decisions, decisions...
And presumably you will criticise the move as strongly as if had been a SNP policy.....? ;-)
Yes, actually. You'll find no double standards here.
It is quite amusing these two stories, obviously the government needs to be seen to be doing 'something' about the housing market. Personally I will benefit from the stamp duty cut as I am buying my first house in December, which is great for me and all that.
But I don't think it will make any difference to the areas suffering house devaluation, South-west, Central and South-east England and the cities in the country. But at least something is being done.
I also don't grudge the English buyers their loans, after all as their house prices are higher they will need the funds.
Edinburgh is experiencing negative house price growth, BSH.