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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