Disguising the new-build tax take

Alan Hibben has a very interesting CAPX piece on the hidden regulatory costs of new-build houses in England. Interesting because it is yet another example of the remarkably furtive and opaque nature of taxation.

But they like it like that


Your new home comes with a hidden tax bill

• The buyer of a £450,000 new-build in England is paying £65,500 in public-policy costs
• Disguising the true tax take has become a political art form in modern Britain
• Buyers of new homes need to be shown where their money is going

When a household pays £450,000 for a new home in England, a striking share of that price is not paying for bricks, mortar or even land. It is paying for planning obligations, biodiversity rules, regulatory overhead and delay-driven finance costs – none of which is itemised for the family that ultimately bears the cost. Stamp duty adds to the burden, although that at least is visible on the completion statement; the rest is simply buried in the price. This opacity is not accidental. It is a core feature of modern British government, where disguising the true tax take has become a political art form.

The result is a system in which the buyer of a modest new home is quietly funding affordable housing, local roads, biodiversity credits, planning bureaucracy and the cost of navigating a slow, discretionary planning system. Yet the buyer is never shown the bill. Britain needs legislated transparency for every new-build sale, so households can finally see where their money is going.


The whole piece is well worth reading, even for those who have no intention of buying a new-build house.

A simple reform: show buyers the bill

If the British state wishes to fund affordable housing, local roads, habitat creation and planning administration through new development, it can do so. But it should do so honestly. A standardised ‘new home cost statement’ attached to every new-build sale would show the estimated per-home incidence of planning obligations, biodiversity obligations, major planning and regulatory fees and SDLT.