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Report Suggests Increasing Council Tax On More Valuable Houses

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Higher-value homes should pay proportionally more council tax, a leading charity has said, with council tax bands changed accordingly.

Research carried out by the Joseph Rowntree Foundation revealed those living in a £320,000 house will typically pay only twice as much as those living in a £68,000 property, despite it being four times as valuable.

Changing the bands would help to keep house price inflation in check, the Foundation said in its Tackling Housing Market Volatility report.

Contentious: The charity believes it would help keep house price inflation in check, but others think it is unfair because poorer people whose property value has risen over time would be penalised

Kathleen Kelly, from the charity, said: 'We need radical tax reform that would reduce volatility and offer a better deal to millions of households, while developing alternatives to ownership so people have access to stable tenancies in both the social and private rented sector.'

John Hitchcox, London property entrepreneur and chairman of global residential firm yoo, said shaking up council tax to lower house prices will cause more problems than it will solve. Today’s RICS figures show house prices falling everywhere apart from in London, negating the need for manipulating prices via the tax system, he said.

Read more: http://www.thisismoney.co.uk/money/mortgageshome/article-2201460/Higher-council-tax-larger-houses-help-steady-market-claims-Rowntree-report.html

Meanwhile people who own one property continue to subsidise the council tax of those who own more than one. So in their example someone owning 2 @ £320k might get 50% off the second one so pays 3 times more council tax for owning property 8 times more valuable.

Some councils give furnished second homes or holiday homes a discount of between 10 and 50 per cent

http://www.direct.gov.uk/en/HomeAndCommunity/YourlocalcouncilandCouncilTax/CouncilTax/DG_10037422

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Meanwhile people who own one property continue to subsidise the council tax of those who own more than one. So in their example someone owning 2 @ £320k might get 50% off the second one so pays 3 times more council tax for owning property 8 times more valuable.

Except that people who own more than one property don't go to school twice as often or make benefit claims twice as often (which is about 75% of council spend), only things like emptying bins gets down twice and that is a trivial spend by the council.

The purpose of council tax is a payment for services offered, distributed fairly amongst local users, its purpose isn't a way to redistribute wealth (fairly or otherwise)

tim

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The purpose of council tax is a payment for services offered

Incorrect. The purpose of council tax is to raise revenue for the government, which then spends the proceeds as it sees fit. You cannot refuse to pay, and many of the services are not optional either (street sweeping, environmental health, planning regulation). There is no point in making an analogy with handing Tesco some cash in exchange for a tin of baked beans.

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  • 399 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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