A leading charity has just made the announcement that they believe that the bands for council tax should be changed in order for people who have high-value homes to pay more tax.
The research was conducted by the Joseph Rowntree foundation and it found that people who live in a home worth over £300,000 will only be paying around twice as much council tax as someone who lives in a house worth around £70,000. This changing council tax rate is clearly not proportional to the value of the homes.
The idea behind the changes to the system would mean that the inflation of house prices is kept in check. A representative from the charity, Kathleen Kelly stated, “The council tax system needs to be radically reformed in order to deal with the volatility that is being seen in the housing market.”
Brendan Lewis, a local government minister has stated, “While we understand some of the suggestions, the government has already decided that there are going to be no changes to the council tax system in the near future. We have no intention of adopting any of the various proposals that have been set out in this report that has been presented to us.”
A recent report has shown that house prices all over the country are falling, except for the homes located in London. Mr Lewis continued, “People tend to think that the housing market is not driven by the supply of credit, but this is simply not the case, it is. If mortgages are affordable and easily obtainable, and people are able to buy the property they want, and this is something that we are dedicated to making happen.”