TNAG-2233-FCO40-3206-Visits-by-the-Office-of-Members-of-the-Executive-and-Legisla-1991 — Page 17

Speculators have taken to buying the flats and marking them up for instant resale. A flat may change hands many times before it is even completed.

5. The concern is twofold: firstly to avoid this

speculation leading to a damaging property crash and

secondly to limit any inflationery impact. On 6 November

the Financial Secretary announced a package of measures to

tackle inflation. This included changes to the application of stamp duty on property. This is now to be charged on all

sale and purchase agreements, rather than only on the final

legal transfer of the documents to the purchaser.

6.

Later in November the main Banks announced that they

were reducing the maximum mortgage to 70% of the valuation

of the property.

FOBABP/2