Green Manifesto – Rent Controls and Land Value Tax

by Property 118

14:09 PM, 19th November 2019
About 10 months ago

Green Manifesto – Rent Controls and Land Value Tax

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Green Manifesto – Rent Controls and Land Value Tax

The Green Party have released their 2019 general election manifesto. This has been very briefly summarised with the key points of interest for Landlords and the PRS industry. Download the full manifesto here

From the full manifesto there is no detailed economic analysis of how their cuddly wish list of promises will be paid for.

Housing

The Green Party supports Rent controls: “Green Party Co-Leader Sian Berry was elected to the London Assembly in 2016. During that time she has campaigned relentlessly for the introduction of rent controls to ease the pressure on the city’s renters, repeatedly demanding at Mayoral Question Time that action be taken.

“The pressure has paid off – in July 2019 London Mayor Sadiq Khan formally asked the government for powers to introduce London rent controls.”

Minimum A rating for rental homes: “Ensure that all 8 million rented homes are A rated for energy efficiency, or as close to this as possible, by implementing a Minimum Energy Efficiency Standard escalator to raise the minimum level allowed from the current E rating to A rating by 2030.

“We will improve the insulation of every home in the UK, making sure they are all warm in winter. This green homes revolution will make sure nobody is forced to choose between heating or eating.”

“Everyone should have a safe, affordable and warm place to call home. We will end the housing crisis by creating enough affordable homes – including 100,000 new council homes a year.”

Taxation

Reform property taxes with a Land Value Tax (LVT): “Abolish Council Tax and Business Rates, replacing them with an LVT.

The LVT will also absorb National Non-domestic Rates, Stamp Duty on Land, Annual Tax on Enveloped Dwellings, Capital Gains Tax on land sales, Inheritance Tax on land and Income Tax on land for owner occupiers.

The new LVT will charge the landowner a proportion of the capital value of the land each year (estimated to be around 1.4% of current values).

“Ensure LVT is paid by landowners regardless of whether or not they live on the land. This will incentivise those who own empty properties to release them back into the housing market.

“Lift millions of renters and business tenants out of property taxes altogether, by shifting the burden of land taxation from land users to landowners. We will legislate to prevent landowners passing these tax costs back to renters and tenants.”

“Protect those who have low incomes, but who are ‘land rich’ with a right to defer the tax until the property is sold or transferred. Likewise, pensioners who are homeowners will be enabled to ‘roll over’ LVT payments until their property is sold, so they don’t feel undue pressure to move.”

Simplify personal taxation into one consolidated income tax:  “Merge Employees National Insurance, Capital Gains Tax, Inheritance Tax, Dividend Tax and Income Tax into a single Consolidated Income Tax. This closing of loopholes will bring in an estimated £20 billion extra per year into the public purse. It will mean that all income is treated the same way for tax purposes.”

“Tax income from investments/ assets at the same level as the taxation of income from work, through the Consolidated Income Tax. This will end the injustice whereby people who work for their incomes are taxed more highly than those whose income is derived from wealth.”

Corporation Tax:  “Increase the rate of Corporation Tax to 24%, in line with the Organisation for Economic Cooperation and Development (OECD) average. We will advocate public country-by-country reporting and consolidated Corporate Tax across the EU to prevent profit shifting.”

Benefits:

“Phase in the introduction of a Universal Basic Income (UBI) sufficient to cover an adult’s basic needs. UBI will be an unconditional payment, paid to all UK residents regardless of employment status.”

“People who were reliant on Housing Benefit before UBI was introduced will continue to receive it, so that they can cover their rent.”


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Comments

Sam Smith

9:52 AM, 20th November 2019
About 10 months ago

My net income after mortgages is £100,000, this excludes repairs

Land value tax will hit me by £85,000 a year, add in the increase in corporation tax and I like other landlords will be facing bankruptcy

Sue Twyford

10:27 AM, 20th November 2019
About 10 months ago

Minimum A ratings for rental homes ? Who would pay for it? I've just had an EPC done with a C rating; to bring it to a B the "inspector" has indicated that if I did all four of his suggestions (inc solar photovoltaic panels, solar water heating) cost would be £8300-12,700, to give an annual combined saving of £384 pa ! Of course the saving wouldn't be mine but the tenant's and any payback well over 20 years. I can't even comment on the LVT and personal taxation ideas....!

Kathy Evans

11:01 AM, 20th November 2019
About 10 months ago

Small businesses get a discount on business rates. If they don't also get one on Land Tax they'll be forced out of business as, obviously, property owners will pass on tax to tenants. If property owner is a non-UK company, that will probably mean a loss of income by Local Authority and the country in general. It is probably impossible to get a Victorian terrace to an A energy rating and might well not actually save any money. Draughts and fresh air are good for health - a sealed environment is not

Steve Masters

12:42 PM, 20th November 2019
About 10 months ago

After a back of an fag packet calculation I would have to put all my rents up by circa £150pcm in order to continue to make a living after Greens proposed LVT and corp tax hikes! How does that benefit anyone?

Sue Twyford

14:49 PM, 20th November 2019
About 10 months ago

Reply to the comment left by Steve Masters at 20/11/2019 - 12:42
Hi Steve - but the article says " We will legislate to prevent landowners passing these tax costs back to renters and tenants.” Oh, don't forget the additional costs associated with the proposal for "implementing a Minimum Energy Efficiency Standard escalator to raise the minimum level allowed from the current E rating to A rating by 2030" Guess we'll all be out playing on those 'level playing fields' LOL

Kathy Evans

16:24 PM, 20th November 2019
About 10 months ago

Reply to the comment left by Sue Twyford at 20/11/2019 - 14:49
Sure it does, but how are they actually going to do that. Companies will find some way to pass the cost back - they always do. If naythig it will encourage people to build houses on their gardens in order to pass tax onto someone else and put farmers out of business - NOT very environmentally friendly. Land is only worth something when you can do something with it, so who decides what the land is worth and how?

Dennis Leverett

18:27 PM, 20th November 2019
About 10 months ago

Can someone wake me up or am I dead. What is going on!!!!! They've all gone mad. The Greens won't get in of course but will take precious votes on these crazy promises making a totally unworkable hung Parliament. Oh yes, just what we have now. This election as it's going would make a fantastic Monty Python sketch full of upper class twits and a ministry of silly walks and the office for arguments. You just couldn't make it up. I've had a better idea, I will plant three trillion trees which I say/promise will totally wipe out global warming, these trees will be paid for by all PRS tenants, sorry I meant PRS Landlords. Where's that bottle of wine I just opened, is it bedtime yet.

Seething Landlord

22:08 PM, 20th November 2019
About 10 months ago

If I remember correctly, S24 was an idea lifted from the Green Party manifesto, so we should not assume that every daft idea will sink without trace.

Alison King

9:23 AM, 21st November 2019
About 10 months ago

It would be impossible to implement these changes in my properties. I'd just sell them all.

Heather G.

15:39 PM, 23rd November 2019
About 10 months ago

I'd have to increase rent by £467 per MONTH just to stand still on our properties with their LVT. I've told our tenants I am freezing their rents for next year and one household is getting a partial rent holiday in December as they've been brilliant.

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