Forum for Science, Industry and Business

Sponsored by:     3M 
Search our Site:

 

Most in high value homes have income to match and can afford local taxes

25.05.2005


The value of property is linked more closely to income and ability to pay tax than many people think, according to new research sponsored by the ESRC.



With council tax still a hot issue, a study led by Dr Michael Orton, of the University of Warwick, found that the problem of people on low incomes living in high value properties may also be less common than often assumed.

Dr. Orton said: "We found that for owner-occupiers there is overall a clear and positive relationship between household income and property value, with few exceptions. This remains the case when different measures of property value are used, and is the same for couples or single people."


Things were found to be slightly different for pensioners, because with generally lower incomes than other home-owners, rises in the value of their property tended to be steeper than any increase in money coming in.

Fewer than one-fifth of all UK properties are in the top four E-H council tax bands. The study estimated that only between six and 10 per cent of owner-occupiers in these high value properties may have a low income.

While council tax benefit does not protect all home-owners in this situation, the investigation found that reforming the system is complicated by how many have substantial savings.

The majority of those with low and modest incomes in E-H band homes are pensioners, says the report. But significant numbers have savings of at least £20,000, making it unlikely they will qualify for any benefit.

These findings come as a review of council tax is undertaken for the Government by Sir Michael Lyons. He is due to report to the Deputy Prime Minister and the Chancellor by the end of this year on how to make the system fairer and more sustainable.

Figures from the Office of National Statistics show that people on middle and low incomes spend proportionately more of their income on council tax than people on high incomes.

Dr. Orton said: "The implication of this new research is that there needs to be debate not only about the small number of people with low incomes living in high value properties, but also the fact that much larger numbers of people in middle and lower value properties are paying more than their fair share of council tax."

Research included the design of an economic model to examine the relationship between property values and household incomes, and in-depth interviews with a cross-section of owners of properties in the top bands.

Dr. Orton cautioned: "When it comes to the individual household, factors such as people moving from ’hot spots’ to lower value areas, inheritance, unemployment, breakdown of relationships, ’downsizing’ and growing older, all mean that trying to determine a ’perfect’ relationship between income and property is misleading."

The study also looked at how much wealthier people get involved in the community these days, and found only a small minority chose not to do so. However, while there were examples of ’neighbourliness’ and ’helping out’ as in poorer areas, there was far greater emphasis on formal voluntary work and membership of organisations.

The study found community activity aimed at anti-social behaviour, in which residents of adjoining, poorer, streets were seen as the cause. Some people spoke of their community protecting itself against others, and even trying to exclude poorer residents from smart areas.

Dr Orton said: "These better-off people primarily saw responsibility as meaning self-reliance and individual economic independence."

Becky Gammon | EurekAlert!
Further information:
http://www.esrc.ac.uk

More articles from Business and Finance:

nachricht Preferential trade agreements enhance global trade at the expense of its resilience
17.02.2017 | International Institute for Applied Systems Analysis (IIASA)

nachricht How Strong Brands Translate into Money
15.11.2016 | Kühne Logistics University - Wissenschaftliche Hochschule für Logistik und Unternehmensführung

All articles from Business and Finance >>>

The most recent press releases about innovation >>>

Die letzten 5 Focus-News des innovations-reports im Überblick:

Im Focus: Breakthrough with a chain of gold atoms

In the field of nanoscience, an international team of physicists with participants from Konstanz has achieved a breakthrough in understanding heat transport

In the field of nanoscience, an international team of physicists with participants from Konstanz has achieved a breakthrough in understanding heat transport

Im Focus: DNA repair: a new letter in the cell alphabet

Results reveal how discoveries may be hidden in scientific “blind spots”

Cells need to repair damaged DNA in our genes to prevent the development of cancer and other diseases. Our cells therefore activate and send “repair-proteins”...

Im Focus: Dresdner scientists print tomorrow’s world

The Fraunhofer IWS Dresden and Technische Universität Dresden inaugurated their jointly operated Center for Additive Manufacturing Dresden (AMCD) with a festive ceremony on February 7, 2017. Scientists from various disciplines perform research on materials, additive manufacturing processes and innovative technologies, which build up components in a layer by layer process. This technology opens up new horizons for component design and combinations of functions. For example during fabrication, electrical conductors and sensors are already able to be additively manufactured into components. They provide information about stress conditions of a product during operation.

The 3D-printing technology, or additive manufacturing as it is often called, has long made the step out of scientific research laboratories into industrial...

Im Focus: Mimicking nature's cellular architectures via 3-D printing

Research offers new level of control over the structure of 3-D printed materials

Nature does amazing things with limited design materials. Grass, for example, can support its own weight, resist strong wind loads, and recover after being...

Im Focus: Three Magnetic States for Each Hole

Nanometer-scale magnetic perforated grids could create new possibilities for computing. Together with international colleagues, scientists from the Helmholtz Zentrum Dresden-Rossendorf (HZDR) have shown how a cobalt grid can be reliably programmed at room temperature. In addition they discovered that for every hole ("antidot") three magnetic states can be configured. The results have been published in the journal "Scientific Reports".

Physicist Dr. Rantej Bali from the HZDR, together with scientists from Singapore and Australia, designed a special grid structure in a thin layer of cobalt in...

All Focus news of the innovation-report >>>

Anzeige

Anzeige

Event News

Booth and panel discussion – The Lindau Nobel Laureate Meetings at the AAAS 2017 Annual Meeting

13.02.2017 | Event News

Complex Loading versus Hidden Reserves

10.02.2017 | Event News

International Conference on Crystal Growth in Freiburg

09.02.2017 | Event News

 
Latest News

Stingless bees have their nests protected by soldiers

24.02.2017 | Life Sciences

New risk factors for anxiety disorders

24.02.2017 | Life Sciences

MWC 2017: 5G Capital Berlin

24.02.2017 | Trade Fair News

VideoLinks
B2B-VideoLinks
More VideoLinks >>>