Plan to link council tax to transport links slammed

Brokers have slammed government proposals for increased council tax in areas where house prices are boosted by new transport links.

The Office of the Deputy Prime Minister is investigating links between land value and transport links.

But Ilhami Agca, proprietor of east-London-based City Mortgage Centre, says: “This would deter people from buying property here, meaning that prices will go down rather than up. People look at the short-term, they will think about the extra tax now rather than the benefit four years later.”

And John Batten, managing director of Bedford-based Mortgage and Financial Planning, adds: “House prices rise as a result of supply and demand and I don&#39t think the transport link is proven enough to justify extra tax. I&#39d be flabbergasted if the government got this through. It would be very unpopular.”

An ODPM spokesman told Mortgage Strategy: “I can&#39t give you a 100% guarantee that this has been ruled out. But this is not about looking at whether or not one could raise a tax – we commissioned the research purely to see if there is any link between value and transport projects.”