Wednesday, 5 July 2017

Killer Arguments Against LVT, Not (417)

From Property Industry Eye:

Lowering estate agent fees and replacing Stamp Duty with a land value tax could help boost property transactions, a new report claims.

Research compiled for the Council of Mortgage Lenders, studying the decline in home movers, looks at reasons behind falling property purchases and how to get the market moving...

Looking at land value taxation – a form of which was proposed in the Labour Party election manifesto – the report cites the Mirrlees Review, analysis by the Institute for Fiscal Studies, that suggested replacing Stamp Duty and council tax with a land value tax in 2010.

The CML report said:

“The benefits in regard to household moves are strong. In addition to the case made by The Mirrlees Review for the greater fairness of a land value tax, it suggested that the Stamp Duty defies the most basic of economic principals by taxing transactions. This clearly reduces the propensity to move.

“Furthermore, the introduction of a land value tax may encourage the more efficient use of the housing stock.”

The authors express support for this but admit a land value tax has been seen as controversial and considerable thought would be needed as well as transitional arrangements.

Well wrap me in tinfoil and call me Shirley! I was expecting the usual Homey bleating but it was rather supportive. Well done whoever compiled the CML report!