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No Council Tax revaluation

The government has said it will not be following Sir Michael Lyons’ recommendations for a revaluation of Cou-ncil Tax bands or the introduction of two new bands for higher value properties.

The Lyons report, published last week on Budget day, recommended the measures to reduce bills for those in the lowest value properties by increasing those of higher value homes.

Sir Michael Lyons also called for Council Tax benefit to be recognised as a rebate and for an automated system to ensure 1.8bn in unclaimed benefit is taken up by the poorest households.

He proposed raising the savings limit for pensioners to 50,000 as he says pensioners are bearing too much of the burden of Council Tax.

Sir Michael Lyons, says: “Council Tax is not broken but has come under pressure as it is seen as unfair.”

But Phil Woolas, local government minister, says: “Sir Michael has proposals for improving Council Tax including revaluation.

“The evidence shows that a revaluation would not have a significant impact on the fairness of Council Tax relative to income.

“But it would cause a lot of disruption for individuals and families.”

Woolas goes on to say that the government will stand by its commitment not to revalue during the lifetime of this parliamentary term and that with the forthcoming three-year settlement for local government concluding in 2010/11, it does not expect to consider revaluation before this date.

Therefore, Woolas says the present system of Council Tax banding will remain in place for the “foreseeable future”.


Would you trust a virtual adviser to arrange your mortgage?

Last week, Purely Mortgages signed a deal with ITV to launch an online mortgage service through broadband TV. The service will use video to help advise customers on products just as Purely presently uses several animated characters on its website to detail its reange of products.

So this week Mortgage Strategy asks: Would you trust a virtual adviser to arrange your mortgage?

House prices rose 0.8% this month

The latest national housing survey from Hometrack shows that average prices grew by 0.8% in March, up from 0.7% the previous month. The annual rate of growth now stands at 6.7% – the highest annual rate since June 2003.

Persimmon launches combined LTV product

Persimmon Homes has launched a new mortgage product, Persimmon Capital Plan to help home buyers get on or move up the property ladder.The Persimmon Capital Plan enables a purchaser to borrow up to 97% LTV with the loan split into two portions, a conventional mortgage on a three-year fixed rate which is available as a […]


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