Mortgage interest relief will end within 10 years
PLANS to phase out 'unfair' and 'distorting' mortgage interest relief within 10 years look set to go ahead in Guernsey, after attempts to double that period were thrown out by deputies.
Deputy Elis Bebb, pictured, warned that during the French Revolution in the late-1700s, there was a great sense of unease over tax advantages for property owners and it was about time that Guernsey brought an end to mortgage interest relief.
'Just over 200 years later, finally in Guernsey we are about to catch up,' he said. 'This is long overdue.'
Deputy Bebb, who has a mortgage, said that while a mortgage was a burden it came with the great privilege of owning your own property.
Other deputies, including Deputy Chris Green, warned of the distorting impact mortgage interest relief had on the property market, while Housing minister Dave Jones raised further concerns over how it could skew the private rental market.
