Osborne said: “In my view it would be intrusive, expensive to levy, raise little and the temptation for future Chancellors to bring ever more homes into its net would be irresistible” after ruling out the rise.
He said: “We’ve already raised stamp duty on multi-million pound homes and next week publish the legislation to stop the richest avoiding stamp duty.
But we won’t introduce a new tax on property. This would require a revaluation of hundreds of thousands of homes. So we’re not having a new homes tax.”
The Chancellor also extended mortgage interest rate relief for homeowners struggling to pay their home loans for a further two years and promised £10bn for £120,000 new homes.
CML director general Paul Smee said: “We welcome the extension of the current arrangements for the Support for Mortgage Interest scheme until March 2015. These had been due to expire in January 2013 but today’s announcement provides a welcome extension of support for homeowners currently receiving income related benefits, as well as helping lenders to extend forbearance to those waiting to qualify.”
Meanwhile, Osborne also admitted that bringing Bradford and Bingley and Northern Rock Asset Management on balance sheet added £70bn onto the national debt.
“This adds around £70bn to our national debt and reminds us of the price the country is still paying for the failures of the past.”
Shadow housing minister Ed Balls said: “People can see the full scale of this government’s economic failure. The national debt is rising, not falling.”
For the full speech, click HERE
