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Developers face £20,000 tax for each property



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Developers who want to build major housing projects in Northampton could soon be forced to pay a 'roof tax' of £20,000 per property.
The West Northamptonshire Development Corporation (WNDC) has proposed the move to raise money for schemes such as new roads, schools and hospitals.

It would affect all developments of more than 50 houses which are built on greenfield sites in Nort
hampton, Daventry and Towcester.

The WNDC's deputy chairman, John Weir, said: "I think the real and clear message about this is it will help guarantee that for every green acre that's built on we'll secure between £900,000 and £1 million of investment.

"That money will be used for things such as affordable housing for first-time buyers and families who otherwise would not be able to live in their own homes, infrastructure for existing communities and enabling us to build high-quality houses.

"Without doubt, this is a win-win situation for everyone who currently lives in the area and for everyone who comes to live here.

"And before the WNDC was created, this kind of thing just could not have happened." In the past, developers building large-scale projects have paid about £3,500 per property towards community facilities.

The proposed level of £20,000 per house would take Northampton's rate to the highest in the country.

The WNDC's chief executive, Mike Hayes, said the proposed scheme would lead to massive investment in the area.

He said: "The WNDC's job is to make sure new homes are supported by the schools, hospitals and transport investment that make communities sustainable.

"Under our proposals, 20,000 new homes are likely to provide around £330 million more for new infrastructure than current planning contributions.

"That's significantly more money for local communities and a big step forward for infrastructure investment in West Northamptonshire."
The idea of a roof tax was first pioneered in nearby Milton Keynes where the level was set at £18,000 per property in 2005. It now stands at £18,500.

The WNDC's plans are currently being consulted on but are likely to be approved later this year.



The full article contains 360 words and appears in n/a newspaper.
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  • Last Updated: 24 April 2008 10:19 AM
  • Source: n/a
  • Location: Northampton
 
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1

TheCountOfNowhere,

Northampton 24/04/2008 11:04:34
Do these people think we are thick:

"Developers who want to build major housing projects in Northampton could soon be forced to pay a 'roof tax' of £20,000 per property."

Do they think we will expect the developers to absorb this cost ? This should be written as:

"Council to charge new home buyers £20K tax on all new properties" !!!!

Another nail in the housing market coffin !!!!

This is abiother back door tax, write to your MP and complain, have you not have enough of being taxed to the hilt ?

2

Mark T,

Northampton 24/04/2008 13:07:35
We must employ the thickest of the thick at West Northamptonshire Development Corporation!

Who on earth would propose a new tax of £20,000 on each new house (on new large developments) just at the point when new house sales slump to their lowest level for 10 years.

The FT Reports today - Persimmon, the country’s largest housebuilder by market capitalisation have suspended house building, due to market conditions. WNDC there is a clue their for you!

This proposed new stealth tax would make Northampton the least most desirable place on earth to build new houses. Developers will simple build elsewhere, leaving Northampton again, stuck in the past with its out of date ideas.

This idea is simply stunning stupidity.
3

Rob@Home,

Northampton 24/04/2008 14:10:51
This will force first time buyers further out of the market.

What a bunch of ***** that are working at the WNDC.
4

Rob@Home,

Northampton 24/04/2008 14:16:08
In a story early this week, the chron claimed that the WNDC was, over the next three years, expecting to consider applications for 27,000 more homes. multiply that with the £20,000 tax and your looking at £540,000,000.

How many needles could the WNDC build with that? maybe they could have one for each member of the WNDC and stick each member at the top.
5

Mark T,

Northampton 24/04/2008 19:47:31
** Update for West Northamptonshire Development Corporation **

The Times also reports to day that Barratt (the house builder) may also be forced to raise capital through a rights issue - due to a steep downturn in sales.

If you wanted put a stealth tax on new builds the time to do was five years ago!

It appears that Northampton is late to the party yet again with our forward thinking executives missing the oppertunity.

I just can't belive how mistimed this proposal is!
6

Merryn,

25/04/2008 10:57:31
What a bunch of naively hopeful tax wasters. Won't be long before existing sites are locked up and left for the weeds, so pointless trying to tax for at least 4 years.

The housing gravy train is over. So much of private and public income depended on it. I wonder how both will react to the loss of funds.
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