THE OWNER-OCCUPIERS’ VIEW

Why would they ever love losing their Wealth as a result of LVT ?

Here’s our proposition: We've decided that wrapping up all of the current taxes on property -- Council Tax, Stamp Duty, IHT, ga-ga Granny Tax, Housing Benefit etc. -- and  transform them into LVT. But how on earth are the politicians going to sell that idea to the 60% of the population who are owner-occupiers and their families? Think of the reactions:

"Watch the price of your house drop to one-third of its present value."

"Be forced to pay tax even if you don't earn a penny."

"Pay the State for something you thought you owned outright, or have the very land under your house nationalised, just like they did in Soviet Russia."

A (THE?) POWER IN THE LAND? 

BANKS ‘Too Big to Fail, Too Big to Jail’ 

The Politics of BANKING and LVT:

During the Great Financial Crash of 2008, caused by the reckless behaviour of the bankers, our government rushed in with our money to rescue them. In the aftermath very little was done to change the way banks operate, and not a single banker went to jail for their crimes. (Big Short ref). A more stunning example of power over the political system is impossible to imagine (unless you include a virus like CV19!).

LVT would threaten to wipe out 75% of the banks favourite retail business – mortgage lending. To break another side of the Iron Triangle that is clamping the Housing Market, namely Banks and Finance, we are up against a formidably well-connected political force. Money power sometimes seems greater than political power, so can the banks be persuaded or compelled to go along with LVT?

POLITICS AND THE HOUSEBUILDERS
Can they change? Might they WELCOME LVT?

So the housebuilding industry, working to its current business model is a failure. It is certainly not producing enough houses. Those that are built are of poor quality. But the greatest criticism is the price of these new houses increases year-on-year. Who is to blame for this mess?

It would be wrong just to heap all the blame the builders, as Liam seems to do. They are compelled to follow this business model, which only politicians could fix.

But the builders are not completely blameless. Their lavish funding of the Tory Party reaps its rewards, and sways the actions of government ministers. (Liam seems to find it especially reprehensible that Tony Gallagher a successful property developer hosted the 50^th birthday party for David Cameron).

THE HOUSE-BUILDING SPEC-DEVELOPERS

Not a normal industry

How would the housebuilders (one arm of the Iron Traingle locking down the housing market crisis )react to the imposition of LVT? 
 Before answering that I have to explain the strange beast that is the house-building industry.
We rely on the house-building industry for our supply of new houses, but we blame them for vastly under-supplying our needs. Perhaps if we understood the production methods which they are forced to follow we could see what is preventing the housebuilders from doing more. Understanding the peculiar characteristics of the spec-builders is essential if we are to find ways to help the housebuilders do better, build more and most of all get prices down.