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.

Good points. I’m not an advocate for it at this stage - I just find the proposal quite interesting (and more nuanced than some of the media has suggested).

I think your first point is essentially what might be proposed (subject to issues about money for councils vs money for central government). The £500k cut off just reflects more or less where a replacement for stamp duty should start being paid.

The second point is clearly very important. The report I linked to suggests not implementing it until the next sale of the house to account for that. Though of course that might lead to a transition period when receipts are down (because tax is neither levied on seller nor buyer) which I can’t see the government liking in the present climate!

this really is the pits and shouldn’t be allowed to happen.

Somehow we need to readjust the North South divide. For my daughter and most of her friends ( in the North) moving anywhere South is now unaffordable yet they too want to work and to be able to access jobs. It’s a luxury afforded only to those South of Birmingham. We now don’t have high speed trains coming to our locations to be able to access these jobs. We can’t cut benefits, we can’t reduce the pensioners benefits so what is left? If your house is £750k or a million k then you are sitting pretty. You just can’t see it because you live in a bubble!

They are going for the middle again. Totally ignoring the super rich. Let's cut benefits and score away at the middle seems to be their motto. I'm also guessing that majority will be in the SE and London.

Where would you go? Can you take me with you?

Immigration is a fairly insignificant cost when you compare it to other government spending. A cost yes, but people overestimate how big a cost it is.

Yes.

This idea from Rachel of accounts is like a fart in the wind. It will blow away and nothing will happen.
The housing market is such a huge financial piece of the UK economy, they would not do anything that would cause price drops - hence all the relaxation of lending, help to buy, mortgage guarantees for banks etc etc.
Pension funds are invested in REITS which are tied to the housing market. They are also major investors in banks, insurers who in turn make a lot of money from mortgaging etc.
Housing tanks, the whole economy tanks. That’s where we are.
Next week Rachel from accounts will be looking to tax elsewhere.

Much as like some of her policies and dislike other policies I find the whole ‘Rachel from Accounts’ thing deeply misogynistic. This is a site which ought to respect women.

You pay the same amount of low tax on the same amount of income as anyone else. Get a grip.

Also what do you mean rest of Europe? France pays way less basic income tax. So does Germany, Netherlands and some others. Other countries have very different setups economically, comparing income tax that is slightly higher for the lowest level isn't comparable for other reasons.

the rich are not enough taxed. Sorry to say it but

Less than 1% of GDP is spent on the asylum system. And yet there are nationwide protests. So falling for the hate being whipped up by the lines of Reform. https://migrationobservatory.ox.ac.uk/resources/briefings/the-fiscal-impact-of-immigration-in-the-uk/

Both immigrants and the disabled are victims of this kind of scapegoating and whataboutery. And then people like you pit them against one another. Look up, not down. It's the rich who are getting away with not paying their fair share, all whilst laughing at those who blame immigrants or those on benefits.

Absolutely.

Living in the south is also unaffordable for young people living in the south. My friends daughter recently graduated and is commuting to her first job at a cost of £8k pa. The salaries are high for a reason. You'd be hard pushed to find a flat here for £200k

Spot on.

alot of people on modest means own property. It’s not their fault the house prices have become so expensive

I love this idea - current systems are not fit for purpose. Won’t happen as the council tax bit is cost neutral and the sales tax is a revenue loser in the short term.

I suggest that the real issue is that in London £500K wont buy anything special but in say Scunthorpe or Ardrossan it will buy the entire town.

I suggest that it should be based on an assessment of prices in each Local Authority area and apply to (say) the top 10% of properties by value with the possible exception of Central London where you have a lot of very high value properties

if the government tax the difference between the buying and selling price, I bet they won’t allow for inflation. I bought my home over 30 years ago. Even if the money invested in the home (bathroom, kitchen, extension etc) isn’t taken into account, the £200,000 paid over 30 years ago does not have the same value as £200,000 today.

It’s not a ridiculous comparison at all, have you got experience renting privately, in last 10-15 years? No
You haven’t, because if you did you wouldn’t be so indifferent.The point @HPFA was clearly making, how can the younger generation, pay high rents whilst saving for a deposit, when house prices are through the roof.

I agree.

Oh dont be daft, MPs of both sexes are lambasted in all sorts of ways, stupid demeaning nick names, all of them.

Well, they will stay through the roof if this comes in because people won't move, so houses will be in higher demand, meaning higher prices.

@FridayFeelingmidweek this tax, if it replaces stamp duty, massively reduces the cost of moving.

@FridayFeelingmidweek this tax, if it replaces stamp duty, massively reduces the cost of moving.