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Scrap stamp duty and council tax to fix London housing crisis, thinktank says

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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