Page 36 | To think an annual property tax is incredibly unfair?

Itchthescratch · 2026-07-01T09:06:01+00:00

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.

Original poster

Itchthescratch · 01/07/2026 11:27

gotmyselfintoapickle · 01/07/2026 11:20

But we tax people to keep up with inflation. If I want my cash to 'keep up with inflation' I have to invest it and I get taxed on that. Even in a cash savings account (which won't quite keep up with inflation) I get taxed on the interest. Even if your house only keeps up with inflation (on average houses have beaten inflation, in some places, like London, they have massively outpaced inflation) you are still paying not tax on that, which you would if you achieved that by any other means.

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I don't think people's homes can be treated in the same way we treat other investments. For a start most people have mortgages so it's not like they have simply paid the value of their asset outright and need to keep apace with inflation. They will have likely paid almost double the amount they bought the house for once interest is accounted for.

The broad point anyway is that there is a weird belief that homeowners in expensive areas are sat on loads of unearned equity in real terms i.e. profit. This may be true for older homeowner's to some extent but for most under 55 it simply isn't.

OP posts:

Bromptotoo · 01/07/2026 11:26

Council tax was regressive from the outset and is now based on property values over 30 years old.

If not capital tax as proposed what other proposals are around?

godmum56 · 01/07/2026 11:25

TheLandlordsAreFrowning · 01/07/2026 10:14

The existing council tax scheme is hugely unfair. I can't say whether a replacement scheme would also be unfair as everything is speculation at the moment.

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This.

Boreded · 01/07/2026 11:25

TheRealWhacker · 01/07/2026 11:05

Yes I think it’s absolutely fair, if you can afford a more expensive house then you should pay more tax. If I can afford an expensive house but choose a cheaper one, my excess money is taxed in other ways such as interest on savings/investments and VAT on purchases, I don’t see why spending on a larger than average property should escape this. I’m also in favour of it removing stamp duty as it will boost the transition in the housing market and encourage more people to move or downsize, which IMO is a good thing.

ETA - we will pay more under this scheme and I still think it’s fair.

Edited

I would pay less than half. £960 a year compared to £2400

Fourlittlepiggies · 01/07/2026 11:24

Agreed. Based on this, our payments would go up significantly. We have average salaries (for London) but live in the SE.

Sadcafe · 01/07/2026 11:23

I know it was universally hated, but sometimes the poll tax doesn’t see such a bad thing, council tax is a joke

Original poster

Itchthescratch · 01/07/2026 11:20

Sinescure · 01/07/2026 11:17

You also own a higher value asset and probably have a higher income relative to what the same job would pay in the North. Not to mention that many job sectors don't even exist here.

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No, once again, the house prices:earnings ratio is worse here so the difference in house price is more than the increase in earnings.

I have to plough more of my money into the asset, money that has already been taxed. I also need to pay a hell of a lot more interest over the lifetime of the mortgage.

I agree that certain industries only exist here. That's true of all major economies where it makes sense to centre some industries in one geographical area. It's just another reason why people can't and we don't want skilled workers to move areas.

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Jellycatspyjamas · 01/07/2026 11:20

Friendlygingercat · 01/07/2026 11:16

Something urgently needs to be done about council tax which is dreadfully unfair on childfree and single people. Especially renters. They use less and pay more to subsidise families who suck up all the resources in the area. Land tax should be paid by the owner - in the case of rented property the landlord. They are the ones who gain from the asset. The current system penalises the least selfish group and rewards the most selfish.

So childless people are least selfish and parents more selfish? Surely that’s not what you’re saying here?

EvangelicalAboutButteredToast · 01/07/2026 11:20

Sinescure · 01/07/2026 11:17

You also own a higher value asset and probably have a higher income relative to what the same job would pay in the North. Not to mention that many job sectors don't even exist here.

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And with that higher salary and higher house prices comes higher prices. How much are you paying for a litre of milk where you are? A loaf of bread? What are the price of swimming lessons per term? How much was your child’s residential this year?

gotmyselfintoapickle · 01/07/2026 11:20

Itchthescratch · 01/07/2026 11:15

In real terms they haven't increased. You can't just ignore inflation.

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But we tax people to keep up with inflation. If I want my cash to 'keep up with inflation' I have to invest it and I get taxed on that. Even in a cash savings account (which won't quite keep up with inflation) I get taxed on the interest. Even if your house only keeps up with inflation (on average houses have beaten inflation, in some places, like London, they have massively outpaced inflation) you are still paying not tax on that, which you would if you achieved that by any other means.

DontEatTheMushies · 01/07/2026 11:19

Itchthescratch · 01/07/2026 10:18

The annual property tax being suggested is that everyone pays 0.48% if their property value each year. Do you think that's fair?

Of course it might not be implemented but this thread is about whether the concept is fair in itself

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Im scotland, so I don't have skin in this game...but that would mean I was paying half what I pay now. And I live in a fairly wealthy rural area.

I dont have time to read up on it, but I guess if house prices weren't insane in some areas it would be fairer.

I personally think that it should be a tax per person in a property, and that it varies based on age/services used.

StrictlyCoffee · 01/07/2026 11:19

2dogsandabudgie · 01/07/2026 10:36

Well we would be £85 a month better off under the new scheme. The current council tax system isn't fair, we're band D my neighbour is band C, our houses are the same size but we are an end terrace and have a side gate which means our garden is 3 feet wider than theirs. So for that extra 3 feet we have been placed in a higher band!

I'm not sure the new scheme would work either, who will do the assessments every year, how much will that cost?

This, council tax isn’t fair. I’m in a 3 bed semi near Glasgow and we are band E. During Covid when people got money back there were people in million pound mansions in the south east getting the benefit as they were band C 🙄

Nottodaythankyou123 · 01/07/2026 11:18

Itchthescratch · 01/07/2026 10:24

Ok well I have less wealth than my Northern friends because I have a huge mortgage and less equity than them in my house. My house is worth more though on paper. Why am I being taxed more for having a big mortgage and less wealth?

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My understanding is that it would replace both council tax and stamp duty, so on your property you’ve already purchased, it’ll be capped as you’ve already paid stamp duty, and were you to move again, you’d then pay the full 0.48% or whatever but you wouldn’t pay stamp duty. In those circumstances I think it’s actually very fair, and for most people, it’ll be a saving!

EvangelicalAboutButteredToast · 01/07/2026 11:18

KrazyKatty · 01/07/2026 11:14

I partly agree with the proposals although they won’t actually affect me, to be honest.

There are far more job opportunities and the salaries are higher in the south of Britain so more jobs and employment and training opportunities need to be made available further north.

The rot started in the 1980’s with Thatcher closing down and selling off the manufacturing and steel industries and successive govts. have only paid lip service to this growing problem and still haven’t done enough to tackle the yawning chasm that’s become the north/south divide.

And why did Thatcher do that? What was the drive behind that?

Sinescure · 01/07/2026 11:17

Itchthescratch · 01/07/2026 10:24

Ok well I have less wealth than my Northern friends because I have a huge mortgage and less equity than them in my house. My house is worth more though on paper. Why am I being taxed more for having a big mortgage and less wealth?

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You also own a higher value asset and probably have a higher income relative to what the same job would pay in the North. Not to mention that many job sectors don't even exist here.

Original poster

Itchthescratch · 01/07/2026 11:16

aodirjjd · 01/07/2026 11:14

Do you live in some sort of weird bubble? We bought our house in 2018 and it’s gone up by 25% since then.

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Inflation has increased by 26-30% since 2018 so your house is actually worth less in real terms. Sorry to break it to you...

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EvangelicalAboutButteredToast · 01/07/2026 11:16

Octavia64 · 01/07/2026 11:11

It’s very standard in a lot of countries.

most tax is unfair in one way or another.

Unless of course your wealthy enough to avoid paying it.

Friendlygingercat · 01/07/2026 11:16

Something urgently needs to be done about council tax which is dreadfully unfair on childfree and single people. Especially renters. They use less and pay more to subsidise families who suck up all the resources in the area. Land tax should be paid by the owner - in the case of rented property the landlord. They are the ones who gain from the asset. The current system penalises the least selfish group and rewards the most selfish.

Original poster

Itchthescratch · 01/07/2026 11:15

gotmyselfintoapickle · 01/07/2026 11:12

Over the last 20 years, average UK house prices have increased by 74%, climbing from roughly £113,900 to around £268,200

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In real terms they haven't increased. You can't just ignore inflation.

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KrazyKatty · 01/07/2026 11:14

I partly agree with the proposals although they won’t actually affect me, to be honest.

There are far more job opportunities and the salaries are higher in the south of Britain so more jobs and employment and training opportunities need to be made available further north.

The rot started in the 1980’s with Thatcher closing down and selling off the manufacturing and steel industries and successive govts. have only paid lip service to this growing problem and still haven’t done enough to tackle the yawning chasm that’s become the north/south divide.

Hicupping · 01/07/2026 11:14

He seems to be quite focused on getting more money into the treasury. I left London as I couldn't afford to buy but in addition to the rich, there's plenty of cash poor who bought before 1997 and also those who bought council properties and are have a council property. Those are now worth so much more but with an inability to pay a tax based on current worth.

aodirjjd · 01/07/2026 11:14

Itchthescratch · 01/07/2026 11:10

House prices haven't increased in the past few decades so your premise is wrong for a start. The increase happened in the 90s and before then. The average first time buyer was 30 years old in 2000 so would be mid 50s now. Anyone younger than that likely has zero 'unearned' equity in their house.

Why then does it make sense to penalise to penalise people under 55 that happen to live in an expensive area?

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Do you live in some sort of weird bubble? We bought our house in 2018 and it’s gone up by 25% since then.

GasPanic · 01/07/2026 11:14

Itchthescratch · 01/07/2026 11:10

House prices haven't increased in the past few decades so your premise is wrong for a start. The increase happened in the 90s and before then. The average first time buyer was 30 years old in 2000 so would be mid 50s now. Anyone younger than that likely has zero 'unearned' equity in their house.

Why then does it make sense to penalise to penalise people under 55 that happen to live in an expensive area?

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If house prices haven't increased relative to amount of council tax paid absolutely nothing to worry about then.

The current proposals are a tax on property value. So no price increases, no high tax.

Original poster

Itchthescratch · 01/07/2026 11:14

ilovemybluesharpie · 01/07/2026 11:09

no it doesn't, but the system is already unfair. I live in a 2 bed bungalow, band C, and my parents live in a 3 bed semi, band A. They have far more living space than I do, and 2 bathrooms. They are rural, I am on the edge of a village. They get the same council services that I do apart from street lights. Both properties have the same financial value but they pay less than I do.

I do think it would be fair to pay a % of your property value. Those who own more will pay more. It should be a cost factored in when you buy a property.

People do choose where to live and there will always be those who can afford and those who can't. A lot of people do stretch themselves to buy the biggest thing they can get rather than buy what they can afford and live comfortably.

I had forgotten that I receive the single occupant discount, so working it out again, I would pay less than half of what I do now. No its not all about me, but it does seem like a much fairer system.

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People have already bought houses though without this being factored in. What if Burnham decided instead of implementing a percentage value to implement a LVT that was targeted specifically at bungalows? Would you be so supportive if I suggested that people could make a decision to buy a bungalow based on the new tax? It's not exactly useful to you as a bungalow owner already is it?

I don't think it's been confirmed that a single occupant allowance would be permitted using the new tax. Afterall if it's a weird form of wealth tax, why would single occupants get a discount? You are wealthier than homeowners who have to share the value of their assets between two adults.

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EvangelicalAboutButteredToast · 01/07/2026 11:13

SunnyRedSnail · 01/07/2026 11:11

No. Its not a fair concept.

Fair would be based on area of house rather than value.

Our house is worth about £700k (4 bed detached) so this would be cheaper for us than the current council tax.

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How much is your current council tax?!

I’ve just put the figures in for our house that’s worth a lot less than yours, and what’s popped out is much more than our current council tax.