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.

The very simple and easiesst thing to do is to flood the rental market with social housing

People are trapped in rentals due to not being able to move to another rental (no where cheaper) and not able to buy due to the cost of the rent meaning they cant save the deposit. They also are worse off becuase the rent is much higher than a similar mortgage might be

People are homeless because the private rental sector needs guarantors and doesnt allow (unofficially) pets, benefits, too many kids etc etc.

Both of these groups contribute to economic limitations, poorer health, more instability at school and poorer attainment.

No government seems to want to commit to this and most of the public dont want that either.

They don’t follow the advice they’ve been given. They weigh up the advice given with the focus groups and vote for what voters think they want (higher taxes to be paid by anyone but them) rather than taxes that actually work. It’s so infuriatingly spineless.

This is the solution. Would save so much on housing benefit too. But oooh we wouldn’t want to do anything to drop housing costs would we? Voters wouldn’t like that.

Everything in society can’t be solved by taxing workers more

@MidnightPatrol why would this only impact workers?

But people are already paying more to live in desirable areas, now reeves wants to tax them more as well.

This

Don’t you think the kind of people who are chippy about private school are probably also chippy about people living in big houses?

And the people who can afford £30 per child per year for private school probably also live in fairly expensive houses?

I would imagine the venn diagram of “people who are affected by VAT on school fees” and “people affected by a mansion tax” will basically be a circle…

Well then you're not the person Im talking about are you!!! What a bizarre response!!

Yes, as did I. Not sure I get your point.

@soupyspoon you are right, we need a huge social housing programme.

But it would need cross party support and as you say I don't think the public wants it. I don't know why though.

I agree with your comment about wealth but I live in a house valued over £500k and we are not wealthy, we do not have lots of money in the bank. The cost of everything has gone up, wealth is having millions of pounds at your disposal. We are just lucky we bought at a good time and the property value went up.

What and wipe off the value of Kier Starmer's property portfolio? Not a chance. Not with all these MPs and all the houses they own (and rent out).

@Letgoofmyblank exactly the savings on housing benefit. But will the public vote for that?

No, I doubt it. In lots of places £500k on a house does not mean it also a mansion.

Hard to believe this would affect you when you are so blasé about paying more taxes. Most people with a £500+ house are probably on a high tax bracket and paying high council taxes anyway. Why should they pay more.

I find the statistics regarding forecast school rolls in different areas of the country really interesting. The city I live in is having a real implosion of families. Yes the birth rate is declining but families also simply cannot afford to live here too.

@SimoneHere well it was why I didn't reference what stamp duty would cost in Scotland...

Well, they were adamant they wouldn't tax "working people" so perhaps as they think 500k is so lofty they'll call it "professional people" tax. Tool makers exempt 😉

I’d assume most people able to purchase a £500k+ house would be in work.

The policy suggests it wouldn’t impact people who already own properties, so pensioners could probably avoid it by staying put.

But the ‘broadest shoulders’ tax policy doesn’t work when you target so many areas - housing, childcare, income tax thresholds, child benefit etc. You do actually need a thriving middle class - and that’s not leaving them with an extra £50 a month for a trip to Nando’s.

While I don’t begrudge income tax - things like childcare subsidies falling off a cliff at 100 k seem ridiculous. It’s just not worth people working full time to say earn 120 k if they have kids.

Then NHS is also an emotive one, while it will keep you alive there are some illness’/ ailments where basically you have to be pretty well off to have a decent quality (am thinking severe mental health struggles/ major stroke.

I dont agree that a mass social housing programme would lower house prices I dont know why that always gets bandied about.

@soupyspoon but wouldn't everyone who lived in London pay the tax or are you saying londoners should be exempt as they didn't move?

Typical Labour

Had to smile, though, at suggestions this could replace stamp duty, when it's entirely possible they'll charge both - after all the new proposed tax would be paid by the vendor and stamp duty by the buyer, so that's a noce little wheeze right there

So I've just paid £26k in stamp duty to buy a bigger house and when I want to downsize once the kids have left home I'll have to pay it again...just for the pleasure of having a crippling mortgage which extends beyond my retirement age and working as a fucking teacher till I'm 67 (so kids can live here as adults because they won't be able to afford to rent or buy)....no doubt they'll raise the retirement age again because they've probably spent my bloody pension already so will be hoping I just die....which is likely given how fucked the NHS is. People who are buying and selling 500k houses are not wealthy, this is not what people mean when they say tax wealth. I live in the south west and that's the price of a normal sized family home.

Our small three bed terrace will be brushing 500. It's only three bed because the large front bedroom was divided into two.
One room downstairs ,one bath and loo and a kitchen too small to have a table in.

South east I dont get my hair cut my DH does it ,all self care is DIY ,i cut my girls hair etc we have no fripperies ,old cars we keep going.
Is it really our house wealth that needs tapping ??
What wealth !!