Tax to hike house prices by 10,000

THE price of new houses will rise by up to 10,000 next year when a Government tax on building is introduced.

Just as the Government is attributing the recent levelling-off in house prices to the success of its policies, city and county councils are being forced to bring in statutory charges which will double or treble existing development levies to raise 500 million a year for local authorities.

The deadline for the introduction of the charges for residential and commercial building is March 10, 2004. The levies, officially called Development Contribution Schemes, are intended to fund roads, water, drainage, parks and community facilities, but no appeal is allowed if the levy is considered too high.