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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

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Original poster

To think people who own more than 3 properties should have a special tax applied to them?

794 replies

Calltheguards · 28/05/2019 10:32

I'm just thinking with the housing crisis, should people really own more than 3 properties? I would assume it's a property portfolio and used to exploit renters. AIBU to think there should be a special tax applied to property owners who own more than 3 properties? Maybe tax them at a really high rate to discourage people from hoarding property.

OP posts:
SuperLoudPoppingAction · 28/05/2019 10:33

Why would you need 3?

Devaki · 28/05/2019 10:34
Hmm
Aus84 · 28/05/2019 10:35

No

magicBrenda · 28/05/2019 10:35

Get lost. They are genuine investments and also a business. They already get taxed - as a business.

Sour grapes

Skittlesss · 28/05/2019 10:35

No, they probably already pay more tax than people with fewer/no properties. (I’m sure you have to pay tax on income from rentals?)

araiwa · 28/05/2019 10:36

Can we just have a sticky named 'bad ideas' for all these similar threads?

Whosorrynow · 28/05/2019 10:37

I'm not sure if your suggestion is viable but there have been changes in legislation affecting landlords which are generally in the spirit of your post OP

Bamaluz · 28/05/2019 10:37

Where would the renters live if there was a shortage of homes to rent? Why do you think they are being exploited, the landlords are providing a service surely.

Landlords do pay tax.

Whosorrynow · 28/05/2019 10:38

Certainly the massive rise in buy-to-let landlords in recent years has contributed to the lack of affordable and secure housing that currently afflicts us

Original poster
Calltheguards · 28/05/2019 10:38

How is it good for the environment for an individual to own more than 3 homes? What benefit are they providing for society? They are essentially a parasite and should be taxed as such.

OP posts:
MotherOfDragons90 · 28/05/2019 10:38

I kind of agree if the money raised was used to invest in more affordable housing. It feels very unfair sometimes that people my age struggle to buy even small/starter homes because many are being hoarded by older people who bought when property was cheap.

IvanaPee · 28/05/2019 10:38

AIBU to think there should be a special tax applied to property owners who own more than 3 properties?

Yes.

mustdrivesoon · 28/05/2019 10:38

Jealous.

araiwa · 28/05/2019 10:39

Explain how owning 3 properties impacts the environment

IvanaPee · 28/05/2019 10:39

It’s not hoarding it’s an income source.

As for the comment on the environment. Just, what?

If investors didn’t own the properties, someone else would. Confused

Whosorrynow · 28/05/2019 10:40

A shortage of homes to rent means more homes for owner occupiers to buy
when landlords go out of business the property becomes available to people who want to invest in their own futures rather than lining the pockets of a landlord

PettyContractor · 28/05/2019 10:41

Charging people rent is only exploitation if you've done something coercive or manipulative to prevent them taking up a better offer. Someone who's just charging the market rate isn't doing anything wrong by being a landlord.

Having said that, I gather renting is a bit shit in the UK, and most people who complain about renting say they want landlords to be more professional. In other words, it would possibly be a better idea for the tax system to encourage landlords that owned more than say 20 properties, instead of favouring those with three or fewer.

ILoveEurovision · 28/05/2019 10:41

Do you mean 3 empty properties that aren't rented out? So 2 would probably be empty most/all the time.

Bluntness100 · 28/05/2019 10:41

You do understand pricing is based on supply and demand. If there was less rental properties the price would go up hugely right? And no it doesn't mean property prices would drop to a level those people could afford to buy. If there was a special tax then it would just be clawed back in rent, again meaning rent increases.

So basically you'd make people homeless given a chance? Make their lives harder? Or did you just not think it through?

Original poster
Calltheguards · 28/05/2019 10:41

I guess if you acknowledge the housing crisis and try to find a solution then you are just jealous. Lol.

OP posts:
MenuPlant · 28/05/2019 10:42

There have been changes to buy to let tax breaks in recognition of some of your feelings op

Initially I thought it would be people who owned 3 or more properties for themselves though.

thetigerthatcamefortea · 28/05/2019 10:42

Well we already have tax laws in place that mean once you own one house you pay significantly more stamp duty on any additional homes.
I’m not sure off the top of my head how much more but I think it is a substantial increase.
Landlords also have to pay tax on rent/income.
Additionally but slightly off topic, 2nd homes in Wales have a premium on council tax in many areas.

So I think there is plenty of tax levies on these people already

butteryellow · 28/05/2019 10:43

They've taken away mortgage interest relief for landlords now (you used to be able to claim the interest as an expense of the business, now you can't), so anyone with 3 properties is likely pushed into the higher income tax bracket (if they were't already).

Anyone who's got a lot of properties probably doesn't own them themselves anyway - they probably have a company that owns them, which would make this idea very easy to get around - own 2 properties, have a company owning another 2, etc.

HollowTalk · 28/05/2019 10:43

Wouldn't virtually all those houses be rented out? They're paying tax then anyway, aren't they?

What if someone owned a couple of holiday homes abroad as well as their home in the UK? Would that count?

Skittlesss · 28/05/2019 10:43

They are essentially a parasite and should be taxed as such

Oh yes those parasitic landlords who dare to charge people rent.