Reeves' plan to tax houses over 500k

[FridayFeelingmidweek]

Just been reading news about Reeves's plan to tax https://www.theguardian.com/money/2025/aug/18/rachel-reeves-stamp-duty-property-tax-council-tax

AIBU to already be worrying about living in the south east? Surely this will force people either to never move, or move away from SE/London.

I'm glad that there is finally something that isn't negatively affecting areas outside the SE but does she actually understand that 500k isn't much down here - 3 bed terrace at best.

How does this work? I am
asser rich (3 bed terrace in London bought way back, still big mortgage until late 60s) but cash poor. So how do people like me pay??

We paid £500k up North and it’s not Downton Abbey, it’s just a normal family home. In loads of areas now, £500k isn’t big cash, unless you’re in a really deprived pocket.

But the narrative is always the same: pitch the person on £25k against the person on £80k, vice versa, while the actual rich – the ones with estates that never touch Rightmove – are laughing into their champagne. Divide and conquer. And the real rich get away scot-free while the rest of us are battered for being “medium successful”.

The more you tax people who are already contributing a lot, the more you push them towards emigration - and therefore losing all their future contributions.

Life is pretty shit in the UK already - cities are lawless, getting a GP/hospital appointment is exceptionally hard, you can’t get a driving test for love nor money. Schools are overcrowded and ill disciplined. You want to go to uni? Cough up £10k per year for fees. And good luck with job hunting after that (perhaps go abroad for a job!).

Students in Denmark can go to uni for free. Norway has low unemployment and low homeless numbers. Iceland has extremely low crime rates. Australia offers a different life. Dubai is attracting people.

The UK is in decline. We are losing all sorts of good people from doctors to tradespeople to teachers. This is disastrous.

I find change quite difficult. But I’m starting to consider emigrating. The grass isn’t usually greener, but the state of the UK means that actually, if you pick the right place, it just might be.

Couldn’t agree more it’s so sad and sp difficult for the younger generation to look positively to the future

Same as us really. Asset rich and cash poor. We were crunching numbers for some of the worst case suggestions that have been floated and feasibly could be taxed more than we earn once it’s all taken into account. I feel really scared at times.

Agree. I have family in free market low tax Republican Texas who pay zero income tax but £20k per year in property tax.

Get rid of income tax and stamp duty, have a property tax instead.

0.5% of property value

What! How is that simple.

How on earth are you going to do that in a fair way.

@Chickenbone123 you are aware lots of countries have property taxes?

Exactly.

in the UK the direct tax burden on average earners is below where it has been for most of the last 50 years.

No country raises more tax than we do without taxing working people more than we do.

@CraftyNavySeal how do asset rich but cash poor people manage?

Yes, and most of them have much higher wages!

Half the countries on benefits.

@Closetoknowing again how have housing costs changed in 50 years?

Half the countries on benefits.

And without pensioners?

Exactly so who is getting the benefits!

I don’t know the stats broken down. But pensioners need houses all the same no?

Yes definitely

This is actually the last straw for the well off living in the UK, or south east anyhow. Work like crazy, scramble up to a flat or house skipping holiday or nice cars, and get destroyed..

Labour lose my vote in an instant.

Likewise.

They’ve changed for everyone.

We have a massive welfare state. It’s only going to get worse. Millions of people on benefits. A news report claimed there are 1.3 million migrants claiming benefits- I don’t know how accurate that is but the figures are eye watering if that’s true.

Yes, and most of them have much higher wages!

And why is that?

This sounds totally ridiculous, but couldn’t every tax payer pay just 50p more for every £100 they earn? I get it’s not popular but surely if everyone paid a wee bit more in income tax, that would fund public services?

@Chickenbone123 half the country are not on benefits.

I hate Labour too. I despise everything about their incompetent envious champagne socialist toxic woman-hating party. A shame because in the past Bevan et al, they were great. Actually not comparable to the current embarrassing shit show.

What about the conservatives, are they any better?
I feel very disappointed with Labour, but can see the conservatives aren’t any better.