Former prime minister Tony Blair has come up with a series of ideas to tackle the ‘housing crisis’, including rent caps and a new annual property tax.
The ‘land value tax’ would see the value of the land that property stands on taxed, rather than the property itself, and would replace council tax and business rates.
The idea is not new, and was a pledge in Labour’s last election manifesto.
Critics dubbed it a garden tax, but supporters say that a land value tax would stop developers land banking.
The report, from the Tony Blair Institute for Global Change, also backs the idea of a new sovereign property fund to help councils build. Councils would be given enhanced powers of compulsory purchase to buy under-used properties.
It is also calling for minimum rent periods of three years with caps on rent rises and stronger protection against eviction.
Blair described the new land value tax as a “fairer and more rational system of property taxation” and said that ideas in the report were radical but practical.
In a video Blair criticises the current government for not going far enough in the Budget on its housing proposals, and says it is concentrating on Brexit rather than housing.
Comments (14)
Tony why not retire? Haven’t you done enough damage already?
Tony why not reduce corporation tax to 10%, get rid of employers NI, abolish stamp duty, bin off business rates and then we might see some movement and growth. Typical labour solutions are always regressive- do they ever learn-muppets
I have been a lifelong conservative voter but when I look back on my 40 years as an Estate Agent my business has made more money under a Labour government. I do not think that this is such a ludicrous suggestion, do away with stamp duty and all other property tax and charge everyone something every year. Property should be taxed annually on size not value, that way the whole country pays and not just the higher value areas. Longer term rental is also a sensible suggestion, providing lenders will agree to it, more long term buy to let investors will come into the market and rents should come down, obviously so will capital values, however if tenants do not pay the rent then you should be able to evict them quickly.
I have young negotiators working for me who live in London, they cannot afford to buy or in some instances to rent either, that cannot be right. I purchased my first home age 21, it was tricky but it was possible and all my friends were doing the same so I was not an exception.
If you tax property annually, prices adjust but you cannot escape paying the tax so you might as well carry on moving, if you live in a big house with higher tax and you are feeling the pinch you are going to move, I think it would be great news for our industry. Who cares what happens to values, transactional volume is the key.
The audacity of a failed man whose only claim to success is the possibly dubious way he has managed to accumulate millions of pounds of personal fortune (if I believe the press then it’s at least £80 million) I just have to wonder why all of these crack-pot ideas he keeps coming up with, were not implemented during his reign as Prime Minister, although to be fair he far too busy cosying up to Bush and organising through lies the deaths of thousands of innocent people and even now because of his actions people are still dying. I have to wonder whether this is another gimmick so he can protect his so called property empire and the possibility of minimising his personal tax liability – who knows?
The audacity of a failed man whose only claim to success is the possibly dubious way he has managed to accumulate millions of pounds of personal fortune (if I believe the press then it’s at least £80 million) I just have to wonder why all of these crack-pot ideas he keeps coming up with, were not implemented during his reign as Prime Minister, although to be fair he far too busy cosying up to Bush and organising through lies the deaths of thousands of innocent people and even now because of his actions people are still dying. I have to wonder whether this is another gimmick so he can protect his so called property empire and the possibility of minimising his personal tax liability – who knows?
What Housing Crisis? Oh you mean that which was created by Local Government selling off all their social housing. Are things not easing since Brexit was announced??? Looking at the portals there seems to be quite a lot of property available to buy and rent or is it only in my area? Within a 1 mile radius 170 properties for sale and over 70 for rent. Has anyone else noted this trend?
Time to retire Tony!
I agree completely-ridiculous individual!
The Tony Blair Institute for Global Change?
What on earth title/brand is that?!
Tony…. I believe the position of God is already taken, hence, am I seeing nano second flashes of a You cackling away with horns, a red cape and a fork? ….. with your tail swishing away in the background!
Well crafted-I do like this one!
Tony who?
Tony Blair Institute for Global Change. I take it that’s an ironic title.
Blair’s vanity and stupidity over Iraq has led to utterly disastrous global change.
Or perhaps we could collect all of the tax not collected by HMRC while he was chasing round the desert/ world looking for weapons of mass destruction, killing far more people of all faiths, both civilian and military than any of the named terrorist groups or dictators had managed, in his and Bush’s war on terror
In 2002 I identified the process to make section 19 workable as an automated process, by 2004 it was built. It was rejected out of hand by HMRC because of the civil service unions.
There is something very wrong about the way we are governed. A fairer society starts with transparent governance, but that isn’t what we’ve got.
There’s just over 3 years to begin collecting the taxes not paid on property income since the 9/11 excuse for war. Its only a ballpark guess but in total that is about £40b!
It shouldn’t be radical but collect all of the tax that has not been paid, and yes that does include that owed by MP’s and Civil service staff who have property portfolios.
Agreed.
The only time I want to see Mr Blair on you tube is when he’s standing in a dock at the Hague.