ACE suggests property sales levy

The UK could adopt a New York style property sales levy in order to raise capital for infrastructure and housing projects, says the Association for Consultancy and Engineering.

ACE is the leading business association representing the interests of professional consultancies and engineering companies operating in the social and economic infrastructure sectors, it has recently released a report calling for a radical approach to solve the UK’s housing crisis.

The report argues for the introduction of placemaking principles, of meaningful community engagement and the building of supporting infrastructure including transport, homes, and education, with the end-goal of creating communities which welcome new homes that are sympathetically designed.

The report also suggests that by creating a levy on the sale of property, as much as £62Bn could be raised in long term bonds in England, more than the current budget of Crossrail and HS2 combined.

The proposed levy would charge a 1% tax on the sale or transfer of property worth £350,000 or less and 1.425% if worth more. ACE estimates that this could raise £2.16Bn if applied in England alone.

Commenting on the proposal for a property sales levy, ACE chief executive Dr Nelson Ogunshakin OBE says: “Our proposals are mirrored on a proven model and would enable local authorities around the country to share in the gains of the property market and receive the vital funds they need to kick-start a housing revolution and invest in its supporting infrastructure, so all can benefit.

“In our view, local authorities are best placed to tackle the housing crisis and a property sales levy would ensure they have the tools at their disposal to do so.  For too long we have skirted around the issue – we need to find new ways to fund the homes the country desperately needs.”

The report, which can be downloaded here, also suggests:

• Putting placemaking principles at the heart of local authority planning
• Ensuring meaningful engagement with local communities on development proposals and their impacts
• That new home design should reflect the desired ‘look and feel’ of a community
• Promoting local authority owned development companies to ‘lead by example’.

Nelson Ogunshakin added: “Of course, finding more money is a key factor in solving the housing crisis, but we also believe that it needs to be spent in the right way. Our recommendations to implement placemaking principles into development, for meaningful engagement with local communities, and for investment in supporting health, education and transport infrastructure, would ensure a holistic approach to tackling what is surely the biggest issue facing our society today.”

The report was launched at the inaugural meeting of the new APPG on Building Communities.

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