Calls to look again at tax
Council tax bands should be adjusted so that those in higher-value homes pay proportionally more, a leading charity has said. The Joseph Rowntree Foundation said adjusting the bands would also ease house price inflation.
Research carried out by the foundation revealed those living in a £320,000 house will typically pay only twice as much as those living in a £68,000 property, despite it being four times as valuable.
Changing the bands would also make it easier to introduce a national property tax, the foundation's Tackling Housing Market Volatility report claimed. The Government needed to increase the availability of social rented homes and look at introducing tougher rules to give greater security to those renting in the private sector.
Kathleen Kelly, from the charity, said: "We need radical tax reform that would reduce volatility and offer a better deal to millions of households, while developing alternatives to ownership so people have access to stable tenancies in both the social and private rented sector."