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Original poster

Housing isn't a source of unearned wealth

162 replies

Itchthescratch · 14/05/2026 14:59

If you bought in the last 20 years.

Houses are now worth the same as they were worth 20 years ago in real terms. We need to get over the idea that every homeowner is sat on a money making asset and therefore is in a preferential position to pay loads of tax on all this non existent unearned wealth. Too many people don't understand how inflation works. £1 in 2006 is worth £1.65 today. House prices need to go up 65% just to be worth the same in real terms.

OP posts:
Ophy83 · 14/05/2026 15:56

We just bought a house for £500k, our sellers bought it 20 years ago for £250k. On your figures, 1.65 inflation would give £412.5k so they have made £87.5k.

Badbadbunny · 14/05/2026 15:55

But real terms wage growth over the past 20 years has only been around 15% so house prices have gone up by a lot more than wages, hence why they're unaffordable for so many people.

jasflowers · 14/05/2026 15:53

Itchthescratch · 14/05/2026 14:59

If you bought in the last 20 years.

Houses are now worth the same as they were worth 20 years ago in real terms. We need to get over the idea that every homeowner is sat on a money making asset and therefore is in a preferential position to pay loads of tax on all this non existent unearned wealth. Too many people don't understand how inflation works. £1 in 2006 is worth £1.65 today. House prices need to go up 65% just to be worth the same in real terms.

I bought a converted barn for 90k in 1999, in 2021 sold for 450k.... don't tell me inflation was 400% + over 22 year.

Bought a house 2 years, its now worth 35k more than i paid for it and i paid top of market, will never realise the profit though as its rented to a very close family member, the only reason i would have ever gone into that sector.

Cash bought property can be profitable, above inflation, its interest rates that devalue.

On CGT, your argument would apply to any asset thats sold, that is why there is an allowance, though this is v small now and remember, expenses are offset against CGT, good record keeping is essential and of course CGT ONLY applies to a property that is not your main residence.

On IHT, the person inheriting gets the assets, that is entirely unearned, so why shouldn't a deduction be made from the estate?

Up to 1m is tax free.

frozendaisy · 14/05/2026 15:52

What tax are you referring to?

hahabahbag · 14/05/2026 15:52

@Itchthescratch

not for 20 years but those who bought in the 70’s and 80’s it’s a different story. I bought in 1995 and that flat bought for £42k (sold many years ago for £150k) is currently on the market for £800k - 30 years

Original poster
Itchthescratch · 14/05/2026 15:48

iminmemamscar · 14/05/2026 15:46

But house price inflation is much more than general inflation, generally speaking, especially when you compare it with wage growth inflation / stagnation

But it hasn't for the last 20 years. At what point do we say that this is the norm?

OP posts:
Original poster
Itchthescratch · 14/05/2026 15:46

measuretwicecutonce · 14/05/2026 15:35

I agree. I also think that many on here simply
do not understand how expensive construction is in the first place. Everyone talks about those in social housing paying rent but my understanding is that this does not cover cost of build and maintenance so long term costs tax payers.

In fairness primary residence can be sold cgt free although depending on amount is included in IHT. Homeowners should be able to offset mortgage and maintenance payments.

CGT for landlords is an issue though. Why should they pay tax on selling something that hasn't actually appreciated in value?

I also think it has long term implications for IHT. Proponents always say that the majority of what is taxed is unearned wealth through profit but what if it isn't?

OP posts:
iminmemamscar · 14/05/2026 15:46

But house price inflation is much more than general inflation, generally speaking, especially when you compare it with wage growth inflation / stagnation

Verv · 14/05/2026 15:45

Locutus2000 · 14/05/2026 15:43

Worries for the already privileged. MN at its finest.

This comment is closer to MN "at its finest" TBF.

Locutus2000 · 14/05/2026 15:43

Worries for the already privileged. MN at its finest.

inmyhair · 14/05/2026 15:42

Yes that ship has sailed now. Plenty of other things to invest in though.

measuretwicecutonce · 14/05/2026 15:35

I agree. I also think that many on here simply
do not understand how expensive construction is in the first place. Everyone talks about those in social housing paying rent but my understanding is that this does not cover cost of build and maintenance so long term costs tax payers.

In fairness primary residence can be sold cgt free although depending on amount is included in IHT. Homeowners should be able to offset mortgage and maintenance payments.