Resolution for radical ideas?
A new study by an influential thinktank has outlined measures which it thinks will help more young people on to the property ladder.
The Resolution Foundation’s Intergenerational Commission has published its final report into fairness between the generations.
Housing is just one of the elements included, but is one of the most important.
* Suggested policies by the Resolution Foundation include:
* Indeterminate tenancies as the sole form of private rental contract available
* A housing tribunal system with powers to adjudicate on possession applications and challenges to rent rises
* Bringing England into line with the rest of the UK by requiring landlords to register with their local authority
* Revisiting housing benefit rules to improve support for younger families on low-to-middle incomes
* Limiting future Help to Buy equity loans to those with an annual household income of less than £60,000 a year.
* Replacing council tax with a progressive property tax – including a tax-free allowance and multiple tax bands – that is related to up-to-date values.
* Halving stamp duty so it supports property purchases by first-time buyers and movers and retain a higher tax rate on the purchase of additional properties.
* A time-limited cut to capital gains tax for owners of additional properties selling to first- time buyers.
* Creating a unit of highly skilled planners in central government to support local authorities in areas of high housing need, and with a full five-year land supply, to deliver high-quality developments.
* Supporting the development of the build-to-rent sector by exempting from the stamp duty surcharge on additional properties any institutional investors that either construct build-to-rent properties or buy them within five years of construction.
* Reforming the viability process to ensure that builders deliver on their up front affordable homes commitments except in exceptional circumstances.
* Allowing local authorities to raise additional money to build new homes via a property tax building precept and new borrowing flexibilities
There are some very interesting ideas in the Resolution Foundation report. They cover some key issues with which our councils have been wrestling, such as the viability process.
Other – perhaps more headline grabbing – measures have included gifting £10,000 to every person at the age of 25 as a ‘citizen’s inheritance’ to spend on housing, education or starting a business.