Renters would no longer have to pay Council Tax under new plans being considered by the Labour party.
Instead a new replacement tax would be paid by landlords.
While landlords might want to pass the tax bill on to their tenants in the form of higher rent, it seems unlikely, as among the new policies proposed in Land for the Many are rent controls.
According to the report, council tax would be replaced by a new ‘progressive property tax’ which would be set nationally.
Owners of empty homes and second homes and non-UK resident home owners would pay the new tax at higher rates. Also paying proportionately higher rates would be family households with bigger gardens.
The plans are in the new document, calling on Labour to make “radical” changes if it wins the next election.
The document specially says: “Unlike Council Tax, this tax would be payable by owners, not tenants.
“This would result in significant administrative savings, lower levels of arrears and less court action.”
It also says that the new tax would “discourage the use of homes as financial assets, reduce the tax paid by the majority of households, and encourage more efficient use of the housing stock.”
As well as shaking up the property tax system, Labour is also urged to “end the buy-to-let frenzy”, make public all information about land ownership, and introduce public development corporations with the power to buy, develop and sell land in the public interest.
The Bank of England should also do more to cool the housing market.
Shadow cabinet office minister Jon Trickett is to study the recommendations in detail but has said that Labour is committing to “delivering a fundamental shift in wealth and power from the few to the many”.
Current Housing Secretary James Brokenshire called the plans a “tax bombshell”.
The full independent report, commissioned by Labour, is at: