Sir, – The Local Property Tax Bill requires householders to self-assess the market value that their property could reasonably be expected to fetch on a sale in the open market and this information will be entered into a register.
Like many people who bought a dwelling prior to the property crash, I have no idea what the market value of my house is. However, I do know that it is worth somewhere less than half of its original value and that I am in significant negative equity.
Herein lies the problem. Property owners will naturally wish to reduce their exposure to the new property tax by declaring the lowest possible value permissible within the guidelines. By doing so they have crystallised their losses. If the property market was to recover, the only way they can ever hope of redeeming the value of their property is by paying more and more property tax. As someone who has paid thousands in stamp duty, this is a galling situation. – Yours, etc,