Wednesday, 4 March 2020

That's the second time this week...

.. that City AM publishes an article which mentions LVT in a positive light:

First Homes is a flawed solution to three very different problems

Stamp duty land tax also gums up the market, making people reluctant to sell even when their homes are no longer suitable for them. Like anything in life, when there is a lot of demand for a good that’s in short supply, the cost goes up... Stamp duty should also be scrapped and replaced with a land value tax to increase the rate of house moving.

Sadiq Khan’s rent control pledge is a minefield of unintended consequences:

If any current or future mayor really wants to reduce rents in London, they could do two things: bang the heads of local authority planning departments together to encourage more planning permission, and lobby Westminster to allow local authorities to receive more of the income from development.

A land value tax, for example, would mean any increase in land value when planning permission is issued would be retained locally, incentivising the issue of more permits.

Wonders never cease.


Bayard said...

Yeah, but they are still repeating the tired old "supply and demand" myth.

Mark Wadsworth said...

B, I know, but I'm bored pointing out how stupid that one is.

mombers said...

But we could have nice low rents like Manhattan or Hong Kong if we built more!

Mark Wadsworth said...

M, that's why central London is much cheaper than out in the suburbs.

Dinero said...

The cognitive dissonance is laughable. Compare this cambridge dictionary definition of "Housing boom" with this Guardian headline. It will make you laugh out loud.

" Meaning of housing boom in English - a time when the price of houses rises quickly: "

"London suburbs set for housing boom as Sadiq Khan relaxes rules ".