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.

One example of how to grow our economy: 20% of our electricity is imported. All our coal, most gas and oil are too. DESPITE having the best coal/oil/gas beneath our own feet.

If we exploited our own resources it would create 100,000's of jobs but the green lobby force us to export all those jobs as we import all this stuff at a premium too so businesses shut due to energy costs, which costs 100,000's more jobs. All madness and easy to sort out.

But Labour governments want us impoverished so we vote for them.

Lots of scope to cut jobseekers. Having been made redundant twice in the last 4.5yrs I left both my jobs with a chunky payout each time (18-26k range each time).
Surprised to realise I was eligible for jobseekers anyway based on my past NI contributions with no means testing either generally or of the payouts received when leaving my jobs. I can only assume there are other ‘loopholes’ that could be stopped with little/no detriment to people.

As an aside, I was working in the UK tech industry which is a complete blood bath in terms of jobs right now. Companies aren’t spending and well-paid £50k++ jobs are being shed everywhere in large numbers. My LI feed is full of people that are suddenly job hunting. The UK service economy is tanking fast which is going to be a growing problem.

Oh, do stop being so rude. There’s absolutely no need for it.

Nobody needs to live in London, it’s not a God given right. If you can’t afford it you live elsewhere and commute, that’s the reason that the tax take is disproportionate to the population.

The summary of this thread = everyone else should pay, but not me

Basically, always the same.

@Zebedee999 why did the Tories not tap into those resources?

She actually tried to address soaring benefits bill.
did you see the raptures people on mumsnet had about that???

Everyone is wishing for a magic money tree

How do you grow an economy when the population only wants to shop through American online companies for stuff made cheaply in China and third world countries and demands ridiculously lax employment laws and insist alll the poor and needy get as much benefit payments as they can and want free healthcare - just where is the money for growth to come from when we are splashing it overseas on goods and holidays - maybe J D Vance will buy up Wiltshire and give us some cash

But I was born here, my family are here, my child’s dad is here, my job is here. What should I do?

@soupyspoon obviously I meant not bad areas!

I think a lot of people think London living is only desirable if they live in somewhere like Balham in a 800k plus flat. I grew up near there, there didn't used to be anything there when I was young 😆. Parts of London are very different now to how they were 30 plus yrs ago. And there are lots of places that are fine despite not having a Gail's!

Most jobs are in London, especially high paying ones. Commuter towns also have high property prices, people aren’t idiots.

people have kids, kids have school and nursery hours so most people cant commute for 2 hours a day one way

So define 'wealth'.

Is it having a huge fucking debt to a mortgage lender, or is it once you have £500,000 equity in your house?

Theres a BIG fucking difference here.

If you are going to tax on mortgage - whats the fucking point in that?! Especially when you are ALREADY being taxed on income and already pay income tax. Its taxing the same thing twice. Just put up income tax / council tax and have done with it.

TBH I see other problems with this anyway. Its just going to encourage downsizing and push up prices on smaller properties whilst devaluing larger properties. This isn't going to help families who STILL won't be able to afford a family home or those struggling to get on the housing market.

Yes… but then you just pay the tax right? I’m one of those people, I’m mature to understand I need to suck it up. There are huge privileges that come with the location I live in, you can’t have everything

I totally knew what you meant.

Im browsing the properties now, many of the cheaper ones are my old childhood area, Sydenham/Anerley/South Norwood.

Flats, 3 beds, some with outside space, some with balconies and medium good leases for around 280k to 350k.

Perfectly doable, perfectly liveable. Unless you're a snob of course. I mean Anerley!! Horrific!!

The absolute cheapest that you could get with a mortgage is 250k, the lease is only 90 years but still doable.

In the example of a 750k house vs a 750k savings account. The IHT difference would be 70k.

People are 100% encouraged to keep money in houses.

There are 8 flats in the whole of the Sydenham postcode on the market for less than £350k - and they are all, bar one, in high rise, pretty dodgy estates.

Cos they were blinking useless too.

And there are 3 in Anerley - all of which have been on for a long time so obviously issues with them. No outdoor space

You mean like they have done on private school fees?

Taxing something being paid for by families on income that has already been taxed?

I thought the majority were in favour of that?

Tbh what does bother me (I have a professional interest too) is that so much of our housing stock is reaching end of life. These 1960s/70s builds now need so much investment under practical circumstances you’d be better off bulldozing and starting again.

A friend is selling his £600k estate flat, it needs significant investments in the next 5 years (tens of thousands per flat) that someone has to find in cash. that’s multipled, whilst all over the country, is more intense in very high value areas like London.

I don’t think people realise that significant portions of housing stock don’t last. It’s not the fault of 1960s builds- think how many Victorian houses have gone, despite the number that have stood the test of time.

surely this is the long term problem- we’ve paid huge amounts for land, but can’t afford significant maintenance?

The way I save money is to spend less.

Yes was just about to write that myself!
Funny how some posters who were happy with taxing the education of children, are now not happy about paying a tax on property. Strange priorities.

So we all move to Shires then? and your property prices suddenly increase?

Again, London is home to 13% of population but already pay 27% of all UK tax receipts.

Do you want us to pay more tax on our properties, income, wealth, IHT, air? to fund ever growing army of benefit claimants? and improve state services for all whilst our children are denied work practice in many public orgs? because we happen to be MC suckers?

ETA: please share how long is your daily commute to work and how much you pay for it?
Because my was 1h20min each way on overcrowded tube where every morning I had to skip a few trains that I couldn't squeeze in and I fainted more than handful of times as I couldn't breath it was so hot and crowded. And no, I couldn't start earlier because I was dropping my DC to their private school which had start at 7:15 in the morning, this was the only option to enable me working. That PS school is also taken from me by your fu..g Labour.

Stop giving increases each year for inflation. Apply cap to all not excluded so many.

Yes, they want everyone to pay tax on everything. That's the end game. No-one is allowed anything that someone else doesn't have.

I need to live in London. It would be hard to care for my elderly parents if I didn't. I also couldn't work, neither could my DP.
Some of us live in London because we were born here. Have family here. Community. God forbid... we LIKE it.