Scrap stamp duty and council tax to fix London housing crisis, thinktank says
Summary
A thinktank called the Centre for London suggests removing stamp duty and council tax in London and replacing them with a yearly property wealth tax. This change aims to help people downsize, save for homes, and fund social housing to address the city’s housing crisis.Key Facts
- The Centre for London proposes a new annual tax on property value instead of stamp duty and council tax.
- This tax would charge higher rates on more expensive homes and raise money for social and affordable housing.
- Average floor space per person grew by 30% from 2004 to 2023, but mostly for wealthier homeowners.
- Homelessness costs London £5.5 million daily, and many live in temporary housing.
- House prices are now 12 times average earnings, making housing very unaffordable.
- Renters would no longer pay council tax, potentially saving nearly £1,900 per year.
- First-time buyers would save over £8,500 in the first five years without stamp duty.
- The plan could add 79,000 homes a year by encouraging owners to move more easily.
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