Deputy mayor says London should get own property tax
Published by Brian Church for 24dash.com in Housing and also in Finance
Richard Blakeway, deputy mayor for housing, land and property at the Greater London Authority, has called for a special London property tax.
Blakeway told the RESI 13 residential property conference in Newport that the tax should be seriously considered as one of the ways to create finance to deliver new homes in the city.
"Stamp duty in London is so high compared to other parts of the UK, that it can be seen as a London tax because it's so much," Blakeway said. "We would like London to be considered for something like this and for housing to be treated like essential infrastructure like rail to help us increase the number of homes to be developed."
The deputy mayor said London's population would be larger than New York City by 2020. This required politicians, policymakers, developers and financiers to consider and use different ways of delivering homes in an attempt to meet the inevitable challenge of a population boom, including a property tax for the city.
LSE professor Tony Travers of the London Finance Commission first recommended such a tax to finance housebuilding and regeneration.
Blakeway also told delegates that the market was led by conventional funding and asked: "How do we have more finance to fund a housing boom to meet the population growth we are anticipating and ensure London can remain competitive as a global city?"
Blakeway said they needed "new players" with new solutions to meet the housing need and this included freeing up more public land for house building and considering new kinds of developments such as PRS.