Property News Item: 00018

27th Jan 2006

New tax proposed to reduce property prices

Source: http://www.niesr.ac.uk

The National Institute for Economic and Social Research (NIESR) says that house prices are over inflated and suggests that a 1% tax would help to bring down prices. This would cost the average home owner around £1,700 a year and produce over £30bn in tax revenue for the Government, which could be used to lower stamp duty or other taxes. The NIESR believes that house prices are currently overvalued by 20%.