To think that the new tax on £2m will eventually be harmful to ordinary folk?

Exactly.

I think ALL income should be taxed in exactly the same way as PAYE.

This isn’t the wealth tax everyone is calling for. This is an example of the type of wealth taxes that have failed in multiple countries; a tax on main residences. This type of tax doesn’t take into account overall wealth and is taxing wealth at too low a level. We need to be looking at overall assets, targeting the very wealthy who live on passive income from their assets. Those who have over £10 million. We are looking for wealth to be redistributed as it has unfairly been moved from ordinary working people and pensioners who used to work, to the multi millionaires/billionaires who live off assets/passive income, over the last few decades creating increasing wealth inequality. This tax doesn’t address this at all. So this is not the wealth tax being called for.

Anything that helps to stop house prices rising is a brilliant thing for the country.

Personally I think if it has any effect it will be only to compress the pricing sadly, lower house prices will still rise.

What they should have done is abolished council tax and replace it with a property tax based on either the value that council tax was based on but uprated for inflation (if it hasn’t been sold since 1991), or the last sold price; maybe .5% per annum across the board.

Nobody in a position to buy a £2 million house is going to give a shit about paying a £2.5k a year surcharge. It’s a rounding error in that context - around 0.1% of the value.

I really don't think in three years my house will be worth 2 million.

Or my mum's. And she's close. If her house does exceed 2 million we will be thanking our lucky stars rather than bitching about a 2% tax

It is already harming ordinary people. But the comrades of mumsnet despise reality and are venomously hateful of anyone who is over 60 and dares to own their own home, so don't expect any normal responses here.

This will be my only contribution, as the barmy squad are out in full "If I can't have it, nobody can!" fashion blaming old people for the shitty mess the government have made of the country and young people's hopes and dreams.

I won't be reading any responses or replying to them. You're right OP, just wanted to point that out.

No.

That’s the minimum. It’s up to £7500. But I agree with you.

First post was spot on. I couldn't quite believe what I was reading in the OP! Im no fan of Labour just now, but it's like the last 25 years of the decimation of public services , including criminal justice, never happened ( remember that the Tories failed to mention that they had not used allocated funds to build new prisons, etc). But Labour should have rebuilt the nation within 18 months?! Labour are chastised by the media for mentioning the legacy of the torys, yet the torys were allowed to bang on about the 2008 crisis, instigated by the US , being labours fault for a decade. Serious double standards. Labour needs to get its communications sorted

Yes

I don't think many people will be losing sleep about the £1.5m-2m property market to be honest.

I think they'll just keep extending it downwards until all homeowners are taxed.

A shortage of 2 million pound family homes?
There isnt though, is there.

But if your house is £2m+ but you have to sell for £1.7, then surely the new homeowner will challenge the £2,500 excess fee as the house is no longer a £2m one

When I lived in America the property tax in my city was about 2% pa.

In return our city services were excellent and quality of life was high. Here, we worry about whether the most basic, lifesaving services will be available when we need them.

I know which I prefer and I am not coming from a place of thinking that others should pay. When I’ve supported taxes that apply more directly to my family on other threads (our house is not worth £2M) I’ve been accused of being wet and worse.

One cannot win.

ordinary folk

It really sets my teeth on edge when multi-millionaires are rebadged as whimsical little "folk".

These "folk" are most likely astute enough to realise that if house inflation is running at, say, 5%, they are still better off buying a £2.1m house than a £1.9m house and benefiting from the increased rate of appreciation of their asset, even taking into account this tax.

And £2m houses in Wandsworth currently benefit from substantially cheaper council tax than £2m houses in neighbouring Clapham, with a far greater effect on the monthly bills than this proposal. And house prices in Clapham have held up marvellously.

If they aren't be able to off load them their value will decrease, problem solved

If 150K stamp duty doesn't put you off the £2 mil house, then I don't think a £200 monthly charge would really impact it.

And if you have benefitted from vast inflation of house prices (i.e. bought 40 years ago for £40K), then it won't impact current sales.

OP, you are wasting your breath. Most people posting on this thread can’t see past the end of their own nose, let alone imagining how taxes suppress the entire market.

In any case, the small minded people are too jealous of anyone who lives in a better home than them. So they’d rather suffer in envy than see the bigger picture. No wonder this country is such a mess. A race to the bottom.

But not everyone paid 30p for a house in 1972. Some have huge mortgages. Good luck with taxing my “wealth” - the building society still owns a good part of my house.

There is apparently to be a reassessing of bands by drone or some such. What’s the betting that 70% of homes suddenly find themselves in at least band G….

As someone whose next house is likely to cost in the region of £1m, I wouldn’t even be close to being put off by a £2.5k annual charge. And a £1m property isn’t even caught.

will place downward pressure on the prices of houses

Good

Haha no