View more on these topics

Labour outlines plans for new property taxes

A Labour government would seek to bring in a progressive property tax to replace council tax and eradicate stamp duty for those buying property to live in themselves.

This would be payable by owners rather than tenants, and empty homes and second homes would be taxed at a higher rate, along with the capital gains earned from second homes and investment properties, details a report published by the party. It also suggests that business rates should be replaced with a land value tax.

Entitled Land for the Many, Labour’s latest paper argues that that land values have risen by 544 per cent since 1995, and by 2016, make up 70 per cent of the price of a home. This, the paper says, along with the practice of land banking and other forms of owning and controlling land, has caused house prices to explode beyond the means of many people.

The report ranges wide and includes ideas for much reform, from the way land is sold to the type of houses built.

As well as wanting to change the way tax is paid to councils, Labour says that it wants the Bank of England to “encourage a shift in bank lending away from real estate”, and once house prices are “stabilised”, to tighten maximum loan-to-income and LTV ratios in an effort to keep house prices down.

Labour’s proposals also target landlords, stating that it would end “the buy-to-let frenzy” by capping annual rent increases and making BTL mortgages “more firmly regulated and restricted”.

Outside of this, the opposition party says that it would form public development corporations that would have the power to purchase, develop and sell land in the public interest using money from regional development banks and that local authorities would set housing targets “based on the type, size and tenure that local people need and afford.”

This local focus continues into the idea for community land trusts and community-led housing, a right to buy model based on the Scottish version, and compulsory sales orders, which would allow public authorities to put unused or derelict land up for sale with a first refusal given to “community groups”.

Recommended

8

Theresa May resigns as PM over Brexit chaos

Theresa May says she will step down as prime minister on Friday 7 June as pressure from the Conservative party  for her to step aside finally felled her embattled premiership. She made the announcement after a meeting with MP Graham Brady who is chairman of the powerful 1922 Committee. This dramatic announcement caps a weeks […]

1

L&G sells insurance business to Allianz

Legal and General has sold its general insurance business to Allianz. The deal, which is expected to go through in the second half of this year, comes at an up front cost of £242m. However, L&G notes that there are also “potential further payments over a three year period from ongoing commercial arrangements”. In a […]

Bray-Phil

Phil Bray: Three reasons to include directories in your marketing strategy

Love them or loathe them, directories are an important resource for advisers Active versus passive, fixed versus ad valorem fees, independent versus restricted; our profession is plagued by seemingly unresolvable debates. We can add adviser directories to that list. The market is dominated by Unbiased and VouchedFor, while AdviserBook is the young pup snapping at […]

Lorraine Mouat: Managing unintended consequences of SM&CR

Firms can reduce the impact by identifying challenges early and adopting some key measures The Senior Managers and Certification Regime is due to be implemented for all Financial Services and Markets Act authorised firms regulated by the FCA on 9 December. While firms need to prepare for the regulatory requirements, they should also be aware […]

Senior man is standing in the kitchen of his home with bills in one hand and a cup of tea in the other. He has a worried expression on his face.

Official figures show shocking disparity in pensioner incomes

Our recent analysis of HMRC figures has highlighted shocking disparities in pension incomes throughout the UK. Our recent analysis of HMRC figures has highlighted shocking disparities in pension incomes throughout the UK. HMRC’s Personal Incomes Statistics 2015-16 show that while the top ten local authorities for pension income are all in London or the South East, […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

There is one comment at the moment, we would love to hear your opinion too.

  1. I find this hilarious. There hasn’t been a UK buy to let frenzy for some time since additional stamp duty was introduced and the amount of relief available on mortgage interest. As someone who had bought a few buy to let properties prior to the changes, we were frequently being outbid by foreign investors looking to set up buy to let properties in the area. On attending local council forums, we understand that they are also not ensuring property regulations are being adhered to as they are often not in the UK to keep an eye on them. I think perhaps they should look at who is still buying lots of property before they start targeting UK home owners and landlords.

Leave a comment

Close

Why register with Money Marketing ?

Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

News & analysis delivered directly to your inbox
Register today to receive our range of news alerts including daily and weekly briefings

Money Marketing Events
Be the first to hear about our industry leading conferences, awards, roundtables and more.

Research and insight
Take part in and see the results of Money Marketing's flagship investigations into industry trends.

Have your say
Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

Register now

Having problems?

Contact us on +44 (0)20 7292 3712

Lines are open Monday to Friday 9:00am -5.00pm

Email: customerservices@moneymarketing.com