A voluntary route to housing and tax reform.
A Location Value Covenant is an agreement between government and a property owner: public support replaces some existing or potential mortgage debt, and the owner makes an ongoing payment linked to the rental value of the location.
A contract designed to work alongside choices people already make.
Location Value Covenants are designed to give homeowners an alternative to a mortgage, with cheaper monthly payments. Unlike compulsory alternatives, an LVC offers a route to adoption that aims to preserve the stability of the nation’s financial infrastructure while easing some effects of central-bank fiscal and monetary policy.
At scale, the remaining covenant revenue could be used to reduce other tax liabilities, completing a virtuous economic circle for the nation.
Consent changes the political equation.
Choice, not compulsion
An owner enters an LVC only by consent. If it is not better for the household, conventional finance remains available.
Linked to location
The payment follows local rental value, creating a different risk profile from an interest-bearing loan.
Designed for transition
The proposal fits existing property and banking processes rather than requiring an overnight transformation.
Five ways the covenant can be used.
Location Value Mortgage
A voluntary, debt-free public contribution towards a home purchase, exchanged for a continuing payment linked to local rental value.
Read briefing →02Mortgage Rescue
Replacing part of distressed mortgage debt with a covenant to reduce household payments and default risk.
Read briefing →03Homeowner Pension & Equity Release
A public alternative to conventional equity release, exchanging a covenant for a regular retirement income.
Read briefing →04Paying Inheritance Tax
Settling a property-based inheritance-tax liability without an immediate forced sale or bridging loan.
Read briefing →05Property Tax Substitution
A single location-linked payment proposed as a substitute for several property-related taxes.
Read briefing →Ambitious reform can still be practical to introduce.
The briefing sets out the features, comparisons, beneficiaries and adoption considerations for political and policy readers.
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