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New land tax would boost housing supply, report claims
Creating a new tax on land in London could lead to the construction of more than 200,000 homes, according to a report conducted by Labour London Assembly member Tom Copley.
The report entitled, ‘Tax Trial: Land Value Tax for London?’, claims that current tax and business rates discourage development because they are only imposed on occupied and developed land. It adds that some sites such as car parks are underused, or remain as lots with demolished buildings, instead of being used for housing.
The report advises that the next London mayor should aim to identify what further devolved powers will be necessary to bring in the new tax.
Copley said: “The greatest challenge facing the next Mayor will be achieving a step change in the level of housebuilding in London. London needs to maximise sites available for housing and infrastructure.
“A land value tax could provide the solution, and this report examines its potential to bring more land forward for development.”
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