Property Taxation Changes Could Threaten UK Housing Recovery

This article by Robyn Wilson of cnplus.co.uk on October 18th, 2013 reveals that UK housing recovery can be threatened by property taxation according to a report.

Erratic changes to property taxation could threaten the UK’s housing recovery, according to a new report commissioned by the Berkeley Group.

In a 45-page report co-authored by the London School of Economics, experts challenged current government policies hindering developer confidence in the housing market, which they said risked future investment in the sector.

Creating the Conditions for Growth identified levies such as the mansion tax as “real issues that could stop the market in its tracks” and called for a complete review of property taxation.

Berkeley managing director Rob Perrins said: “We have had years of reactive changes and deliberate inaction.

“The idea of a mansion tax is just the latest example of a political response rather than a coherent approach to creating a fair and predictable system.

“What we need is a comprehensive review of property taxation, looking at stamp duty, council tax, inheritance tax and the annual charge all at the same time.”

Berkeley highlighted three main reasons to address taxation immediately, placing housing as a core contributor to economic growth.

Meeting the housing requirements of population growth was another main factor for the group, as was London’s increasing need to build more affordable housing across an ever-differing income scale.

If effectively addressed, the report concludes that the UK could benefit from much-needed, stable investment.

Article Source: http://www.cnplus.co.uk/news/sectors/housing/property-taxation-changes-could-threaten-uk-housing-recovery/8654465.article