By dint of history and inaction by me and my late husband I have found myself with 3 properties. We used to rent 2 out on a long term basis to families, but when he died 6 years ago I stopped. Successive governments have regulated / taxed the private rented sector such that the return isn’t worth the risk. That’s fine…I don’t mind that, but there are now 2 less rental properties on the market.
I have been paying council tax on them all, which is also fine - I have worked hard most of my working life to make sure I can maintain a reasonable lifestyle in retirement and I split my time between them. Now, having retired (early, because after he died I didn’t see the point in accumulating more stuff) I am still coming to terms with a retirement without him, so I really don’t know where I actually want to be. All are in locations that are good, for different reasons. City, country, coastal. If I put any of them on the market they would, in all probability, go to local professionals or be second homes. But, the transaction costs of moving now are also so high (stamp duty in particular) that I am unwilling to sell, and then possibly have a change of heart about where I want to be and need to buy again.
I realise that in some respects it’s a nice problem to have, but then I’d rather have my husband and the life we had. I’ll pay the tax, as I have all my life, until I work it out.
But, when does it stop? Should any household with more than one car pay double VAT on all additional cars, and a 200% surcharge on the road fund licence? Should the government abolish the option to ‘SORN’ vehicles? Own multiple cars? Pay for all of them, at a punitive rate? That would certainly help tackle congestion by reducing the number of cars, and improve air quality and road safety. Get rid of some of the school run traffic and improve public health as well!
The problem is, now we’ve tackled those who have more than one home and more than one car, what comes onto the radar next? Double taxation on those whose dare to save more than the government deems necessary?
It’s easy to dress this policy up as a way of tackling the housing crisis, but the properties we are talking about are not going to solve that. What’s needed is large amounts of proper social housing, in areas where there are jobs and people want to live, with affordable rents. So it’s hard not to see it as a policy of ideology / spite. Particularly as almost every MP has more than one property, but is able to expense the council tax on the second no matter how high it is. And yet, when I lived away from our main home as a necessity HMRC didn’t deem the council tax on the place I rented as an allowable expense, instead treating it as BIK’able!