The Independent Housing Policy and Delivery Oversight Committee has called on the Chancellor to resist “tinkering” with property taxes in the upcoming Budget and instead consider wholesale reform of the tax system to address structural issues in the housing market.
At its first meeting in September, the committee responded to speculation that the Chancellor may announce significant changes to property taxation, such as new levies on landlords, and warned that piecemeal revenue-raising measures could worsen affordability pressures.
The committee, which includes senior figures from across politics, academia and the housing industry, identified several areas for further investigation.
These include affordability and access to homeownership, the impact of the Renters’ Rights Bill, planning reforms, the availability of suitable housing for older people, the rising costs of construction, the decline in SME housebuilders, and the role of local and central government in delivery.
It will monitor progress using key metrics such as house price affordability, homelessness and temporary accommodation levels, net additional dwellings, and the quality and design of existing stock.
The committee will meet every three to four months and publish reports analysing trends and assessing government objectives.
The Independent Housing Policy and Delivery Oversight Committee is funded by the Family Building Society as part of its contribution to research into the UK housing market. Alongside Sir Vince Cable, members include Mark Bogard, CEO of Family Building Society; Rt Hon Damian Green; Luke Murphy MP; Neil Jefferson, CEO of the Home Builders Federation; economist Vicky Pryce; Ingrid Schroder of the Architectural Association; Maya Singer Hobbs of the IPPR; and Professor Tony Travers of LSE London.
Sir Vince Cable, chair of the committee, said: “There is no doubt that the housing market is not working efficiently and property taxation is a significant factor.
“The case for major reform of the whole property tax system – from Stamp Duty Land Tax to Inheritance Tax to Council Tax and VAT – is almost unarguable.”
He added: “Recent speculation about piecemeal changes in the Budget for revenue raising purposes, if they came about, would be a step in the wrong direction.
“To take just one example, putting National Insurance tax on landlords would be most likely to lead to higher rents for tenants. That is, in effect, an increase in taxation on working people.
“The reality is that wholesale reform is needed to make the market work more efficiently and achieve improvements in housing provision across the country. This is no small task and we do not underestimate its complexity or the political dimension.
“Change on the scale necessary demands the most careful consideration and at the least, a White Paper and extensive consultation to avoid unintended consequences to this fundamental aspect of society.”
