Landowners could be faced with yet another tax if the government decides to follow the recommendations set out in the Barker report published this morning.
Author of the report and member of the Bank of England's Monetary Policy Committee, Kate Barker, suggests the government should "use tax measures to extract some of the windfall gain that accrues to landowners from the sale of their land for residential development".
This would not only affect people who own a piece of land, but it would also hit freeholders seeking building permission for further developments.
Landowners might also suffer another blow as Barker believes the government should, for example, consider to increase planning fees in order to release and strengthen local planning authorities' resources.
The report also recommends that following measures should be taken:
- The government should establish a market affordability goal, making housing a national priority
- local authorities should charge more for second homes to improve efficiency of the use of number of properties
- The government should publish a review in three years time measuring its progress in establishing the recommendations set out in this report
- Each region should set its own target to improve market affordability
- Local plans should be more realistic in their initial allocation of land, and more flexible at bringing forward additional land for development
- The government should consider ways of incentivising local authorities to meet housing growth targets
- An additional 23,000 social housing should also be built every year to keep up with demographic trends. This will cost the government up to £1.6bn per year
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