New proposals for an annual property wealth tax have come from a housing charity, the Joseph Rowntree Foundation.
Echoing Lib Dem minister Vince Cable’s repeated demands, the charity is calling on the Government to change the council tax system and move towards a national property tax, where those who live in dearer homes would pay the most.
In the first place, it wants to see council tax raised on pricier properties. It says this would help drive down house prices and ‘play a key role in stabilising the market and ending boom and bust cycles’.
Mark Stephens, co-author of the report, ‘Tackling housing market volatility’, said: “Overall, the steps taken by the government fall far short of the fundamental overhaul we desperately need to create a stable housing market.
“Tackling issues such as property taxation require political bravery and there is an important longer-term prize at stake: a more stable system that has a greater social benefit than the four boom and bust cycles we have experienced since the 1970s. But in some ways this progress report shows we are moving further away from a stable housing market.”
But John Hitchcox, property entrepreneur and chairman of yoo, said that shaking up council tax in an attempt to lower house prices would cause more problems than it would solve.
He said: “I’m a big supporter of the Joseph Rowntree Foundation and the fantastic work that it carries out – however, there are conclusions here that just don’t add up.
“Just because someone lives in a pricier property it doesn’t mean they’re necessarily richer. Over time, some homes have spiralled up in price quicker than others. Many older people for example, have invested in their homes over the years and now live on minimal pensions. Making such people pay more because their properties have shot up in value would create more problems than it would solve.”
He added: “It’s fair to say that council tax valuations, tied to 1991 numbers, are out of date. But let’s not pretend Vince Cable’s national property tax is any great fix, because it’s not. We need to be encouraging mobility in the market and this will only be done by reducing Stamp Duty and cutting moving costs.
“Radical reform has to be a new look at housing – not the same old announcements repacked for another set of political playing cards.”
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Comments
"Cut the rate of corporation tax to 20% so all those business’s that moved to Ireland will move here."
It's not just business taxation that Ireland will have a competitive advantage on. The lower cost of housing there means companies can pay their staff less whilst not reducing their standard of living. There is a lesson here for the UK!
Let’s have no more ideas about raising tax levels. We already pay far too much tax. Let’s reduce costs and therefore taxes
Cut the rate of corporation tax to 20% so all those business’s that moved to Ireland will move here.
Cut the top rate of income tax back to 35% so all those wealthy people who spend so much time and effort hiding their income or registering their companies abroad would pay our tax. All the French business’s and business persons would relocate here.
Dogma prevents this as it looks like favouring the rich when in practise the poor and working class would benefit from better services and more employment. It’s easy really, make my Chancellor
So, those in 'council' houses would pay very little or even nothing altough they uaually use the services most!
A new style 'POLL TAX' on all individuals over 18 who are in work is the only fair way to pay for local services..
Sorry that should read Any one who believes that two homosexual men should not be allowed to adopt a child in preference to a heterosexual couple is a bigot.
Well @Nick. Obviously it’s the staff. The charity is not a self activating computer with opinions of its own. Like all Liberals Vince “The Prince” is a bigot. Any one who does not believe that man made emissions are causing the end of the world and not cows farting is a bigot. Any one who wants to control the numbers of criminals coming into the country is a bigot. Any one who objects to homosexual couples getting married in church is a bigot. Any one who does not believe that two homosexual men should not be allowed to adopt a child in preference to a heterosexual couple is a bigot. Any one who thinks wind turbines are not going to help reduce carbon emissions in any way and only blight the landscape is a bigot. Some body stop me.
Don't blame the Charities it is the staff. The real issue is that the post O level generation have gone off, got a "degree" from what used to be a college of FE and have ended up with a job, the requirement for both Maths and English language qualifications have been dropped in favour of computer and internet aided degrees that see people without the ability to use a calculator in positions that give credibility to anything the publish yet they are spewing out utter rubbish.
Good on John Hitchcock for the common sense he contributed to the story.
The only way to get a stable housing system that is fair on all is communism and even that is inevitably more fair to some than others.
Vince Cable is ensuring that the Lib dems don't have much to do with mainstream politics come the next election. He is polarising views that will see a return to divided left /right politics.
Why oh why do charities feel the need to get involved in politics? Don’t these guys realize that the majority of their donations come from those who live in more expensive properties or companies involved in the property market?
It would be interesting to see how this spouting increases the donations this year.
I phrase comes to mind. Zip it.
POTW - see the last part of my post...
'rantnrave'; One-off windfall tax on unearned equity, should do the trick nicely.
Errr, sitting here minding my own business and, weirdly, my house has gone up in value by 30k this year. Tax demand for 5k. Errr, where do I get the money from. Re-mortgage it?
And, oh look, my house has gone down in value by 30k this year - looks like I need a tax rebate so I get the money back.
It's complete bolleaux. I'm up for sane house prices for the next generation as much as the next man. But ideas like this are just claptrap.
I feel a rebrand is on the way...
Soon to be re-named 'The ROBIN HOOD Foundation'!
;o)
Shame on JRF - a tremendously valuable part of our national thinking - to come up with such poorly thought out clap-trap. This country needs less taxation, less red-tape and more growth. These Quaker type thoughts are so left wing it makes my hair stand on end. Shame on you!
One-off windfall tax on unearned equity, should do the trick nicely.
; )
If there is a problem, tax it. Weak politics, seldom solves the problem.