January 27, 2006 | posted by Michael Baxter in Uncategorized |

Council Tax might be more popular than the old Poll tax, buts it’s keeping house prices too high, or so says the National Institute of Economic and Social Research. In its latest forecast for the UK economy, unveiled yesterday, it said: “One reason for the long-term strength in real house prices is the favorable tax treatment of owner-occupied housing, which is not addressed by recent government policy.” It says house prices are still 20% overvalued and recommends ditching Council Tax, in favour of a tax calculated at 1% of the value of the property.