A voluntary route to housing and tax reform.
intro: A Location Value Covenant is an agreement between government and a property owner or tenant: public support replaces some existing or potential mortgage debt or rental, and the owner makes an ongoing payment whose initial amount is agreed as part of the transaction and subsequently adjusted with local land values.
A contract designed to work alongside choices people already make
Location Value Covenants are designed to give homeowners an alternative to a mortgage, a difficult tenancy or shared equity ownership, 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. If carefully funded, LVCs could also replace part of bank-created mortgage credit with existing long-term savings, moderating leverage and property-driven monetary expansion.
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 initial payment is agreed as part of the transaction and subsequently adjusted in line with local land values, creating a different risk profile from an interest-bearing loan. It does not require a precise valuation of the individual plot.
Designed for transition
The proposal fits existing property and banking processes rather than requiring an overnight transformation.
Explore 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 →02Location Value Mortgage 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 →06New Home Covenant
Funding part of a newly built home’s price in exchange for a continuing covenant, reducing the purchaser’s mortgage while paying the builder in full.
Read briefing →07Wider Property Investment and Support
Financing property improvements, infrastructure, business premises and major property-related liabilities through reciprocal Location Value Covenant agreements.
Read briefing →08Monetary Stability & Inflation Control
A strategic national merit: less bank-created mortgage credit, lower household leverage and a potential brake on property-driven inflation.
Read briefing →09Family Farm Covenant
Settling agricultural inheritance tax and financing farm investment without forcing the sale or break-up of a viable working farm.
Read briefing →10Tenant and Rental Covenant
A voluntary agreement through which capital, refinancing, works or services are exchanged for an LVC and enforceable improvements to the tenant's position.
Read briefing →11Brownfield Land Covenant
Financing remediation and enabling works on brownfield land without taxing the buildings, improvements or productive activity subsequently created there.
Read briefing →12Empty Homes Covenant
Voluntary capital, repairs and practical support for empty-home owners in exchange for an LVC and a binding commitment to sell, let or occupy the home.
Read briefing →