The report calculates that a change in the way home ownership is taxed would free up 595,000 homes across England within five years.
Broken down, he found that:
The abolition of the stamp duty would lead to a significant increase in transactions with up to 315,000 properties vacated.
The additional tax burden for owners of second homes could see 135,000 homes become primary residences.
55,000 currently empty housing could be made available.
It is estimated that 90,000 houses with planning permission would be built.
Faireer Share says the shift to a property tax system that reflects current values ââ- rather than municipal tax brackets established 30 years ago – would be “more transparent and fairer”. The campaign group estimates that 76% of households in England would be better off with a proportional property tax, with the average household expected to be better off by Â£ 435 a year.
The report also argues that replacing the housing tax and stamp duty with a proportional property tax could greatly help younger generations access the housing ladder. Research earlier this week found the UK to be one of the least affordable countries in the world when it comes to buying a home.
The Fairer Share research found that of the 595,000 homes potentially vacated as a result of the policy change, 255,000 would be one- or two-bed homes suitable for first-time buyers, while another 249,000 would be three-bed homes for first-time buyers. young people. families to move into. In London, meanwhile, he says as many as 47,000 one and two-bed properties could be vacated.
Cornwall – which has long had housing problems due to issues with second home owners – became the local authority area in which the largest number of homes would be vacated, with a figure of 15,000. That, according to research, is in part due to the high number of second homes in Cornwall that would be marketed as primary residences.
Faireer Share says the latest findings put additional pressure on ministers to introduce a proportional property tax, backed by think tanks such as the Institute for Public Policy Research and Bright Blue, as well as several Tory MPs and Labor.
In addition, the select committee of communities and local governments urged the government to consider proportional property tax as an option for broader housing tax reform.
“By sticking to the current unfair and outdated tax system, ministers are pointing fingers at the young people of this country,” said Andrew Dixon, chairman of Fairer Share.
âReplacing the housing tax and stamp duty with a proportional property tax would not only reduce the bills for most households, while reducing them to zero for tenants. Our report shows that this would also pave the way for the release of several thousand additional housing units for young people and families who need it. “
He added: âIf the Prime Minister truly believes in leveling up, he should prove it by making property taxes fairer for everyone. The reality is that the upgrade program is doomed to fail without fundamental reform of the property tax system.
Lord Willetts, a conservative peer and chairman of the Resolution Foundation’s Intergenerational Center, said the cost of housing is holding back the younger generation. âWe need to put more housing on the market for them,â he argued. âA proportional property tax is the key to this. It would replace the housing tax which has become more and more regressive and particularly harsh for young people. I welcome this important report.
Simon Fell, Tory MP for Barrow & Furness, one of the traditionally Labor Red Wall seats won by the Tories in the last election, said: âThe current house tax system is outdated and unfair. The introduction of a simpler and fairer property tax system could bring enormous benefits to millions of people across the country, making it transparent and fairer for all, and in particular alleviating a disproportionate burden on them. youth.
“As we look to take it to the next level across the UK, I can think of a few measures that would better demonstrate to people that this government is committed to keeping its promises to the people who voted us out in 2019.”
Angus Hanton, co-founder of the Intergenerational Foundation, said: âFor too long, older generations have used housing as a form of investment: the result has been sky-high house prices and older generations feed on youth income. We welcome the ideas in this report which, if adopted, will help tackle the windfall unearned gains of older generations. “
Sam Robinson, Senior Researcher at Bright Blue, concluded: âThe UK housing market is woefully inefficient, and there is now a growing consensus that our current property tax system only exacerbates these problems. . This timely report clearly shows how an alternative approach can free up much needed housing stock and help struggling young people succeed in life.