Property Tax! The Government is apparently to undertake a review of council tax, as it is constantly being criticised. The proposed way forward could be a Property Value Tax. Property Value Tax would be levied on the actual value of each home, meaning that it would be in the Government's interest to let house prices rise, in order to raise more income.
The Treasury apparently commented that when compared to other investments, houses were taxed lightly.
Our View
No Government is ever going to win with taxes. However, whilst a tax on property value would increase revenue to the Government, it will add to the costs of purchasing a property. This will heavily impact on first-time buyers. If the Treasury believes that houses are taxed too lightly, expect something new to be introduced. But, will it come before the next election? Probably not!