A great article in the Telegraph today about a proposed solution to the cladding crisis that has blighted the lives of millions of homeowners.
In a report which will be released later today, experts will call for the Government to establish a “special purpose vehicle” that would raise funds on the bond market. This cash would be used to pay for cladding repairs and the bond would be repaid over time via a levy on the industry.
This would require a new tax on property sales and a levy on the freeholders which own many cladding-hit blocks. It also proposes additional taxes on non-dom and foreign buyers. From April, overseas buyers will pay a 2 percentage point stamp duty surcharge and the report said this should be increased further.
I (DB) am extensively quoted in support of the proposal.
Dean Buckner, a former Bank of England economist who helped design the proposal, said it would help leaseholders avoid ruinous charges but also ensure it was not funded by the public purse. It would also avoid a one-off “windfall tax” on house builders, which may be viewed as unpalatable by the industry.
“Asking leaseholders to pay is like asking the victims of a plane crash to pay for repairs to the aeroplane,” he added.
I am presenting the proposal to the All Party Parliamentary Group on Leasehold Reform later today, and the full report should be available soon.
[EDIT] Presentation went VERY well, which you can view here. Passcode U$p0+snF