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.

I don't hate school fees. I hate taxing the education of children

You claimed I was "picking on you" yet you are now doing the same to me!

You've obviously run out of actual arguments if you are resorting to this.

'Soldier on' back to you if that's the same sentiment as "suck it up".

I’m always a bit confused by this message- yes the midlands and north are cheaper than the SE of course. But it’s not the 90s anymore. You’re not surrounded by £250k mansions.

Im visiting Stockport today. The first 2 sales for 500k here. You can absolutely buy comparable properties for £500k in many parts of the south east.

Can we not derail the thread with fecking school fees!

This is about housing though, and whilst it would be nice to grow the economy instead you can then ask how? What with?

Historically our wealth was grown because of the Empire, we have no desired natural resources. As the Empire has shrunk, quite rightly, a lot of what we have left is housing. Manufacturing has been lost, we priced ourselves out of shipbuilding and such like, people don't seem to like well educated people anymore, even though the service industry is the biggest money spinner we have left, but we don't like that at the moment, our creative industry is also well respected but we seem to want the BBC shut down as well. Brexit has made the UK much more unattractive to invest in when you can invest across the Channel with a bigger pool of employees, resources and more attractive trading terms.

So housing is one of the only things that there is left to tax. It's not like the rich can hide a house or land like they can with other assets.

If you don't make money through importing, investment, tourism, or exporting it's just the same pot of money swimming around.

Omg!! £500k for a 3 bed terraced in Stockport? For real?? JC things have changed in the NW..

So housing is one of the only things that there is left to tax.

No. We need to raise income tax. Across the board. Everyone needs to pay in to society.

Have I missed something?

From what I can see the article doesn't give information on the likely rate, so how is it possible to come to any conclusions about impact?

Unless a country produces goods or services that can be sold beyond its borders, it isn’t truly generating new wealth—just circulating money internally.
Housing is not, in itself, productive economic activity. Much of the UK’s economic imbalance comes from the way we treat housing as an investment vehicle rather than as infrastructure.
The same applies to low-value, consumption-based services like takeaway food or personal grooming[1]: they keep money moving domestically, but they don’t expand the economy in the way that exports, advanced manufacturing, or high-value services do.

The more economic activity takes place in jobs which then rely on top up benefits, the worse it all gets.

[1] Nail bars and barbers.

We have a DST in the UK, it's under review but it hasn't been scrapped. I think Trump put pressure on the EU who were planning to introduce a levy but haven't yet.

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

I’d dispute that. 50 years ago the basic rate of income tax was 35% with 9% NI on top.

No they don’t. I worked in a regional law firm in the SE. I got paid the same as I would in Leeds or Manchester. My brother is a teacher. He lives and works in the Midlands. He would be paid exactly the same if he worked in the area that I live in 40 miles from London. The difference is that he would pay THREE times as much for exactly the same house where I live.

The world is struggling along with the UK right now. If Brexit was the cause, how does that work?
You’re making absolutely no sense. If we hadn’t left the EU, everything would be brilliant? We’d be growing faster than the rest of the whole world? Ridiculous.

Absolutely this.

You've not fallen out with another poster have you?

How so many people can get wound up about about something that isn't even a proposal, is beyond me, then fail to consider that the starting rate tax on a 500k house in the SE, might be less than paid currently..... with more expensive ones paying more than now.....

But i guess it gives people on the right an excuse to say Labour are useless, without saying how you would fund our public services..... no surprise i suppose, Badenoch or Farage have no clue either.

Wealth? You must be kidding 🤔

Where we live the most basic semi near failing schools cost over 500K.

Yes, and this is what happens in most other European countries already.

This is the PERFECT man/woman-in-the-street answer to any new tax policy ideas:

”I will end up paying the same/slightly less, so I think it’s a fair policy.”

Do you see how self-centred/selfish you sound?

National tax policies can’t be based on 1 person living in a £400k flat in Barnet. We can’t all move to Barnet.

Who will it impact?
Will there be regional differences?
Will it impact different demographics?
Will it raise more money?
As it’s combined with council tax, will it solve the funding crisis for councils especially wrt social care, or will it be gobbled up by central govt?
How much local accountability will there be for the local council tax element?

etc etc

Do you think the govt has done this analysis?

I mean you can't talk about that can you? You've fallen out with a lot on the 2 tier threads.

You just posted this to bait me? Isn't that a reporting offence 🤔

Exactly

At which point you’ll pay tax on 75% of it. What will you have gained?

I need to read the detail of this but it seems an excellent way to absolutely collapse the housing market that’s already been dead for four years. I bet estate agents everywhere have their heads in their hands. Like fuck would we move and pay this terrible government one penny.

The more she taxes us the sooner economy collapses, the sooner we get Reform, the sooner they abolish IHT, privatise NHS and kill welfare system.

Winning against society? 😂

😂🤷‍♀️ I don’t bother reporting. I leave that to them, precious little souls.

I don't see a problem on paying tax on wealth that an asset has acquired as well. (This will affect us as a family by the way). And if it happens it happens and we are not going to lose sleep over it.