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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

To think an annual property tax is incredibly unfair?

966 replies

Itchthescratch · 01/07/2026 10:06

I come from an area with low house prices. It is great! My friends can generally afford houses even with lower salaries as the earnings:house prices ratio is better. Rents are also lower so they have proportionately more disposable income.

I have moved to a more expensive area where house prices are higher and people have really had to push themselves to buy a property. Salaries are higher but not high enough to make up the difference. They have had to pay more stamp duty , pay more interest and have less disposable income each month.

I am really struggling to understand why my friends in the South should also automatically be paying more property tax under the new proposals being suggested by Burnham supporters? What is the justification? They would love to buy a large detached house for £300k like my friends from home but this isn't possible. It feels like they are being double penalised.

Just to add house prices haven't risen in real terms in the area in live in now for 20 years so the value of my friend's houses is simply money they have paid in.

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poetryandwine · 03/07/2026 14:57

Itchthescratch · 03/07/2026 14:43

The relevant point is that you are suggesting that SH isn't subsidised and that the government directly funding or effectively providing very cheap capital to build SH isn't a form of long term subsidy. Of course it is. If they didn't do this then SH rents would have to be higher to meet the costs of repaying the original build cost or the capital to build the property would have to be repaid directly by the state and then it would be super obvious it's a subsidy. Just because the money is all front loaded, it doesn't mean that it doesn't make a difference long term.

The comparison with a mortgage is just to illustrate the point I was making. We all know how someone paying half our mortgage or half the build cost for our house would impact our ongoing payments. It is the same with SH.

I would love to know why you're so determined to prove that She isn't subsidised. Do you live in it and want to believe you pay your way?

I have never lived in SH nor accepted help with a down payment or mortgage. DH and I paid off our only mortgage long ago and have bought for cash since.

Itchthescratch · 03/07/2026 14:43

poetryandwine · 03/07/2026 14:28

What does this situation have to do with that of someone living in SH? One is a mortgage. the other a rental. Apples and oranges.

We cannot calculate the worth to either the LA or the tenant of discounts obtained by the LA in purchasing land, building SH and calculating rents. We don’t know the terms on which the LA borrows money, which are generally very favourable.

The relevant point is that you are suggesting that SH isn't subsidised and that the government directly funding or effectively providing very cheap capital to build SH isn't a form of long term subsidy. Of course it is. If they didn't do this then SH rents would have to be higher to meet the costs of repaying the original build cost or the capital to build the property would have to be repaid directly by the state and then it would be super obvious it's a subsidy. Just because the money is all front loaded, it doesn't mean that it doesn't make a difference long term.

The comparison with a mortgage is just to illustrate the point I was making. We all know how someone paying half our mortgage or half the build cost for our house would impact our ongoing payments. It is the same with SH.

I would love to know why you're so determined to prove that She isn't subsidised. Do you live in it and want to believe you pay your way?

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EasternStandard · 03/07/2026 14:36

Bellic · 03/07/2026 14:30

It’s quite straightforward. Are you paying the full market value rent for the property? If not it’s subsidised.

Yes it seems an odd hill to die on. It’s a subsidy for SH. That’s why it’s attractive. Plus the security.

Bellic · 03/07/2026 14:34

poetryandwine · 03/07/2026 14:33

Disagree. Any landlord can choose to rent for under market value. We see MumsNet landlords doing this all the time.

And that’s the landlord subsidising the rent.

poetryandwine · 03/07/2026 14:33

Bellic · 03/07/2026 14:30

It’s quite straightforward. Are you paying the full market value rent for the property? If not it’s subsidised.

Disagree. Any landlord can choose to rent for under market value. We see MumsNet landlords doing this all the time.

EasternStandard · 03/07/2026 14:32

On the one off v over time it can be a one off

Yes, a subsidy can absolutely be a one-off . In the UK, these are formally known as "ad hoc" subsidies and are awarded as individual, standalone grants rather than part of an ongoing scheme.

@poetryandwine

Bellic · 03/07/2026 14:30

It’s quite straightforward. Are you paying the full market value rent for the property? If not it’s subsidised.

poetryandwine · 03/07/2026 14:28

EasternStandard · 03/07/2026 14:18

Sure if you like. It’s still tax payer money. If someone got half of their mortgage paid off by the gov / tax payers are you at subsidy yet?

What does this situation have to do with that of someone living in SH? One is a mortgage. the other a rental. Apples and oranges.

We cannot calculate the worth to either the LA or the tenant of discounts obtained by the LA in purchasing land, building SH and calculating rents. We don’t know the terms on which the LA borrows money, which are generally very favourable.

EasternStandard · 03/07/2026 14:18

poetryandwine · 03/07/2026 14:14

You are correct OP in that it was @EasternStandard who mentioned UC in relation to SH. This is a red herring in that the housing element of UC can equally well be applied to private sector housing.

One may as well say that private rentals are subsidised by the government.

Sure if you like. It’s still tax payer money. If someone got half of their mortgage paid off by the gov / tax payers are you at subsidy yet?

poetryandwine · 03/07/2026 14:14

EasternStandard · 03/07/2026 13:12

There have been posts on grants and UC re social housing as I googled and posted it here.

You are correct OP in that it was @EasternStandard who mentioned UC in relation to SH. This is a red herring in that the housing element of UC can equally well be applied to private sector housing.

One may as well say that private rentals are subsidised by the government.

EasternStandard · 03/07/2026 14:14

Itchthescratch · 03/07/2026 13:56

I haven't mentioned UC. Can you please address the points I made and explain how funding half the build costs with taxpayer funded money or even taxpayer backed loans isn't a form of subsidy? If it isn't then please can the state either pay off half my mortgage or build me a house where I will pay half and they can pay half.

Yes that sounds great. Then @poetryandwinecan argue that no tax payer money has been used.

EasternStandard · 03/07/2026 14:13

poetryandwine · 03/07/2026 13:53

@EasternStandard and OP: UC can be applied to any type of housing. In no way is it specific to SH.

I am with Hansard and @Blossomtoes on this. When most people griple about SH subsidies, they are ill informed. You illustrated this by bringing UC into the picture when it applies equally to the private sector.

That’s what came up when I googled. Shake your fist elsewhere.

Of course tax payer money is involved.

poetryandwine · 03/07/2026 14:09

I said this isn’t what people typically understand as subsidy. No one has mentioned it in many, many pages over three threads until I did here. I believe that if you yourself had known about it, you would have said so.

Your mortgage is also a repeated, ongoing cost.

Itchthescratch · 03/07/2026 13:56

poetryandwine · 03/07/2026 13:53

@EasternStandard and OP: UC can be applied to any type of housing. In no way is it specific to SH.

I am with Hansard and @Blossomtoes on this. When most people griple about SH subsidies, they are ill informed. You illustrated this by bringing UC into the picture when it applies equally to the private sector.

I haven't mentioned UC. Can you please address the points I made and explain how funding half the build costs with taxpayer funded money or even taxpayer backed loans isn't a form of subsidy? If it isn't then please can the state either pay off half my mortgage or build me a house where I will pay half and they can pay half.

OP posts:
poetryandwine · 03/07/2026 13:53

@EasternStandard and OP: UC can be applied to any type of housing. In no way is it specific to SH.

I am with Hansard and @Blossomtoes on this. When most people griple about SH subsidies, they are ill informed. You illustrated this by bringing UC into the picture when it applies equally to the private sector.

NorthXNorthWest · 03/07/2026 13:49

@Itchthescratch

Just to make you aware, there is a tried and tested pattern with a couple of posters. They'll swear blind they're right while conveniently avoiding the main substance of your posts, even when you provide evidence to the contrary. Instead, they will try to derail or hijack the discussion by arguing over technicalities and semantics rather than fully engaging with your argument. They will insist that you provide evidence for every point you make, while expecting you to accept their own position simply because of their perceived moral, academic superiority or other credentials.

See where your thread is heading...

EasternStandard · 03/07/2026 13:31

Itchthescratch · 03/07/2026 13:28

This thread isn't about whether SH is subsidised or not so why would I have mentioned it before @blossomtoes assertion that SH isn't subsidised and her insistence than a random Hansard article proves this is just plain fanciful.

I absolutely disagree with your assertion that subsidising building costs doesn't equate to a long term subsidy. Of course it does. The mortgage comparison is absolutely relevant. If I came and paid off half your house now then your ongoing costs would be lower and you would be paying much less every month. That's how it works with SH too. Subsidy isn't just in the form of someone handing over money every month to meet running costs. The costs of running my home day to day are less than the cost of my mortgage.

Edited

Yep

Itchthescratch · 03/07/2026 13:28

poetryandwine · 03/07/2026 12:53

I did not gloss over the building grants. I believe I am the first person on this thread to have mentioned them!

These cannot be thought of as ongoing subsidies. When most people say ‘social housing is subsidised’ we know they are not referring to building grants. Otherwise someone else - you, perhaps? - would have mentioned them before p27, to say nothing of the other two long threads on this topic.

This thread isn't about whether SH is subsidised or not so why would I have mentioned it before @blossomtoes assertion that SH isn't subsidised and her insistence than a random Hansard article proves this is just plain fanciful.

I absolutely disagree with your assertion that subsidising building costs doesn't equate to a long term subsidy. Of course it does. The mortgage comparison is absolutely relevant. If I came and paid off half your house now then your ongoing costs would be lower and you would be paying much less every month. That's how it works with SH too. Subsidy isn't just in the form of someone handing over money every month to meet running costs. The costs of running my home day to day are less than the cost of my mortgage.

OP posts:
EasternStandard · 03/07/2026 13:12

poetryandwine · 03/07/2026 12:53

I did not gloss over the building grants. I believe I am the first person on this thread to have mentioned them!

These cannot be thought of as ongoing subsidies. When most people say ‘social housing is subsidised’ we know they are not referring to building grants. Otherwise someone else - you, perhaps? - would have mentioned them before p27, to say nothing of the other two long threads on this topic.

There have been posts on grants and UC re social housing as I googled and posted it here.

poetryandwine · 03/07/2026 12:54

GasPanic · 03/07/2026 12:49

If Burnham wants to implement significant changes then he will have to put them through parliament in the same way as the same way the council tax was put through parliament in 1992.

There will be no "sidestepping of democracy".

Of course. Where is anyone suggesting otherwise?

poetryandwine · 03/07/2026 12:53

I did not gloss over the building grants. I believe I am the first person on this thread to have mentioned them!

These cannot be thought of as ongoing subsidies. When most people say ‘social housing is subsidised’ we know they are not referring to building grants. Otherwise someone else - you, perhaps? - would have mentioned them before p27, to say nothing of the other two long threads on this topic.

GasPanic · 03/07/2026 12:49

Itchthescratch · 03/07/2026 11:26

No, you don't just get to side step the idea of democracy because of perceived inequality.

Council tax is a local tax to pay for local services. It is a fundamental part of local democracy as the council is able set tax rates and spend the revenue. This is why we have local elections and councils can set out different visions at a local level and appeal to local voters.

Virtually every other tax doesn't work like this and places like Blackpool already benefits hugely through national subsidies. The people of Westminster are almost certainly already hugely subsidising the people of Blackpool.

If Burnham wants to implement significant changes then he will have to put them through parliament in the same way as the same way the council tax was put through parliament in 1992.

There will be no "sidestepping of democracy".

Itchthescratch · 03/07/2026 12:44

poetryandwine · 03/07/2026 12:16

But SH is only indirectly subsidised. It is not subsidised in the sense that most people use the word.

The land and building costs are subsidised with one-off grants and that’s it for direct grants. Local authorities will absorb any losses from below market rents. However because market rents incorporate profit, below market rents do not necessarily incur loss. It depends on how well the LA manages.

Approximately 70% of SH tenants are retired, employed, or in full time education. Some SH tenants, by no means all of them, are on benefits including the old age pension. However it is double counting to call this a subsidy to SH and this is not methodologically respectable in the social sciences.

Glossing over the grants given to build a property is like glossing over the fact that someone was given a huge inheritance to fund half the purchase price of their house and then pretending that this wouldn't impact ongoing mortgage payments and suggesting that the homeowner is funding the cost of the house themselves. They may be meeting the cost of payments on the mortgage but the mortgage would be a lot higher if they hadn't been handed a large chunk of money in the beginning.

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poetryandwine · 03/07/2026 12:16

Itchthescratch · 03/07/2026 11:45

Ok, how about they certainly do.

The average annual income tax paid by residents in Westminster is approximately £43,700, in contrast, residents in Blackpool pay an average of around £2,890 per year,

I honestly wonder about your frames of reference. You didn't seem to know that rural areas were more expensive to serve, you don't think SH is subsidised, you thought Westminster might not be subsidising Blackpool....

But SH is only indirectly subsidised. It is not subsidised in the sense that most people use the word.

The land and building costs are subsidised with one-off grants and that’s it for direct grants. Local authorities will absorb any losses from below market rents. However because market rents incorporate profit, below market rents do not necessarily incur loss. It depends on how well the LA manages.

Approximately 70% of SH tenants are retired, employed, or in full time education. Some SH tenants, by no means all of them, are on benefits including the old age pension. However it is double counting to call this a subsidy to SH and this is not methodologically respectable in the social sciences.

Itchthescratch · 03/07/2026 12:08

BIossomtoes · 03/07/2026 11:54

There’s no need for personal insult just because you disagree with me. I know social housing isn’t subsidised and provided a Hansard link as evidence. I questioned whether Westminster is subsidising Blackpool, no evidence has been presented that it does, just “almost certainly” now amended to “certainly” with some figures apparently plucked out of thin air.

Social Housing is definitively subsidised. Why do you think the Affordable Homes Programme exists? I didn't see your Hansard article but it won't prove SH isn't subsidised by the state because it is subsidised.

The figures aren't plucked out of the air.
https://moneyweek.com/personal-finance/income-tax/average-income-tax-by-area

Woman walking past HMRC building

Average income tax by area: The parts of the UK paying the most tax mapped

The UK’s total income tax bill was £240.7 billion 2022/23, but the tax burden is not spread equally around the country. We look at the towns and boroughs that have the highest average income tax bill.

https://moneyweek.com/personal-finance/income-tax/average-income-tax-by-area

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